Tritax Big Box secures new £500m debt facility

The facility will refinance £253.34m of the group's existing debt currently provided by Barclays Bank and Santander UK and comprises a £320m term loan which will be drawn in full immediately, a further £80m term loan available to draw up until the first anniversary of the facility, and a £100m revolving credit facility which includes a £10m overdraft component.

Tritax said the facility has an opening margin of 1.40% above three-month LIBOR and will reduce the group's average margin payable on its debt facilities, when fully drawn, from 1.77% to 1.42%.

Colin Godfrey, partner of Tritax, said: "This is a very attractive loan package that will immediately reduce the group's average cost of borrowing by 35 bps, extend our average unexpired loan term and bring the group's LTV ratio more in line with the group's stated medium term target. The facility will also provide the debt resource needed to support our ongoing growth plans, building upon our strong financial performance.

“The facility offers the group substantial operational flexibility and includes an option to draw against our current and future forward funded investment assets at the same margin.”

The company’s existing loans with Landesbank Hessen-Thüringen Girozentrale, London Branch will remain outside the facility and are unaffected.