British Land secures £485m new bank deal

25th Feb 2015 07:05

British Land has signed a £485m unsecured revolving credit facility (RCF), replacing on better terms a facility that would have matured in May 2016.The facility is at an initial margin of 90bps and has been arranged with a syndicate of seven banks.Chief financial officer Lucinda Bell said: "This facility extends the term of our strong and well diversified portfolio, whilst the £400m cancellation reduces cost and is consistent with our policy of maintaining flexibility and not gearing up on yield shift."We are very pleased with the level of bank support we have received on this transaction, reflected in a margin that is 25bps lower than the comparable facilities we agreed last year."According to an investor note released on Wednesday, the facility's five-year maturity could be extended to a maximum of seven years uponBritish Land's request and each bank's approval.The Royal Bank of Scotland was the documentation and facility agent and was also appointed joint co-ordinator and book runner along with Santander Global Banking and Markets, Bank of Tokyo-Mitsubishi UFJ and Barclays Bank.Commitments were also provided by Bank of China and Crédit Agricole Corporate and Investment Bank, also as Mandated Lead Arrangers, and by Handelsbanken as Lead Arranger.