Safestore Refinances US Notes And Amends Bank Facilities

LONDON (Alliance News) - Safestore Holdings PLC said on Friday it will refinance its US private ...

Alliance News 19 May, 2017 | 8:52AM
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LONDON (Alliance News) - Safestore Holdings PLC said on Friday it will refinance its US private placement notes as well as amending its existing bank facilities, with the intention to extend the average maturity and lower the cost of the company's debt financing.

Considering the US private placement notes, the existing notes of USD65.6 million at a coupon of 5.83% due 2019 and USD47.3 million a coupon of 6.74% due 2024 will be repaid in full.

The new notes comprise 7-year notes worth EUR50.9 million at a coupon of 1.59%, 10-year notes worth EUR74.1 million at a coupon of 2.00%, and 12-year notes worth GBP50.5 million at a coupon of 2.92%.

The existing UK and Euro revolving credit facilities have been extended by two years from June 2020 to 2022, with an option to extend for another year, while the existing GBP126.0 million loan has been cancelled.

The new agreement involves a GBP190.0 million revolving credit facility from which up to GBP120.0 million will be drawn, and a EUR70.0 million revolving facility from which up to EUR46.0 million can be drawn. Safestore will retain the option to increase the quantum of the sterling facility by GBP60.0 million.

The margins on both facilities will be reduced from 150 basis points to 125 basis points.

The new debt arrangements are expected to come into effect on May 31.

"We are pleased to complete the refinancing of our bank facilities and US private placement notes, further reducing the group's ongoing cost of debt whilst significantly improving the debt maturity and flexibility of our facilities. We extend our thanks and appreciation to our funders for their ongoing support," said Chief Executive Officer Andy Jones.

Shares in Safestore Holdings were up 1.3% at 428.91 pence on Friday morning.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Safestore Holdings PLC 637.00 GBX -1.09 -
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