Supermarket Income REIT has completed a £170m refinancing through its first private placement debt issuance and a new unsecured bank facility.
The company has signed and completed an agreement with a group of institutional investors for a private placement of €83m (£70m) of new senior unsecured notes. The notes have a maturity of seven years and a fixed-rate coupon of 4.44%.
Proceeds will be used to refinance euro drawings under an existing secured revolving credit facility with HSBC, which was used to fund the recent acquisition of a portfolio of 17 stores from Carrefour.
Supermarket Income REIT has also refinanced its existing £97m secured debt facility with Deka through a new £100m unsecured debt facility with ING Bank.
The ING facility comprises a £75m term loan and a £25m revolving credit facility. The interest-only facility has a maturity of three years and two one-year extension options at the lender’s discretion. It is priced at a margin of 1.55% over Sonia and benefits from forward starting hedges, which cap the interest rate at an all-in cost of 3% until January 2026.
The REIT now has an LTV of 37%.
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