Grainger secures refinancing of loan facility

Residential property owner and manager Graigner has signed a refinancing of its Grainger Invest property portfolio bank facility with existing lenders, HSBC and Santander, reducing its cost and extending its maturity.

The new £150m facility replaces the existing £120m facility and will represent 11% of total group facilities. Grainger said it matures in September 2020 - previously March 2016 - and leaves the group with no further significant facility maturities until 2020.

The margin on the facility has been reduced by 85 basis points to 170bps and the structure enables further pricing benefits to be gained at future lower levels of loan to value. Covenants remain unchanged.

The company also confirmed on Wednesday that Standard & Poor's Ratings Services has raised its issuer rating on Grainger’s existing £275m of senior secured notes, due 2020, to investment grade, 'BBB-' from 'BB+'.