Safestore in refinancing deal to save £3m a year
(ShareCast News) - Safestore Holdings said it had refinanced its US private placement notes (USPP) and amended bank facilities to extend the average maturity and lower the cost of the group's debt management by £3m a year.
In a statement, Safestore said its $65.6m 5.83% 2019 and $47.3m 6.74% 2024 USPP will be repaid in full. New Euro and Sterling denominated USPP will be issued with the following tenor and coupons: €50.9m seven year notes at 1.59%, €74.1m 10 year notes at 2.00% and £50.5m 12 year notes at 2.92%.
Existing UK and Euro revolving credit facilities are extended by two years from June 2020 to June 2022 with an option (on an uncommitted basis) to extend for a further year with the existing £126m term loan cancelled, Safestore said.
The amended facilities will comprise a £190m revolving credit facility of which c.£120m will be drawn and a €70m revolving facility of which around €46m will be drawn.
The group will pay a 'make-whole' payment to existing USPP noteholders of around £12.5m and will also break the sterling/dollar cross-currency swap relating to the existing USPP notes which has a current mark-to-market value of around £13m in favour of the company.
Safestore said as a result of the changes its annual underlying finance charge would be cut by £3m and the average cost of debt, including the USPP, fall by 120 basis points to 2.4%.