Hibernia refinances its €400m revolving credit facility
Hibernia Reit is to refinance its €400m secured revolving credit facility.
The refinancing will be done with a €320m unsecured revolving credit facility and €75m of unsecured US private placement notes.
The unsecured facility has a five year term and a margin of 2pc over Euro Interbank Offered Rate (Euribor).
As a result of the refinancing, the weighted average maturity of the group's debt has increased from 1.9 years to 5.7 years.
The company's current net debt position is €210m.
Tom Edwards-Moss, CFO of Hibernia, said the company was "delighted" to have agreed the refinancing, which significantly extends the maturity of the group’s debt and "locks in longer term, low cost funding."
"In addition, our move to an unsecured debt structure, the first Irish Reit to do so, ensures we have access to the widest possible range of funding options in future."
The participating banks in the refinancing are made up of Bank of Ireland, Wells Fargo, Barclays Bank Ireland and Allied Irish Banks.
Bank of Ireland and Wells Fargo acted as joint coordinators, and Bank of Ireland is acting as agent. Previously the secured facility, which was repayable in November 2020 and had a margin of 2.05pc, was the group's sole debt facility.
The notes have an average maturity of 8.5 years and a weighted average coupon (fixed rate) of 2.53pc.
They are being placed with a single institutional investor in a transaction priced on 26 October 2018 and pursuant to a note purchase agreement signed on 18 December 2018, which will close on 23 January 2019 and comprises two tranches: €37.5m at 2.36pc due 2026 and €37.5m at 2.69pc due 2029.