Unite secures new £500m debt facility
Unite Group has secured a new £500m unsecured debt facility from HSBC and RBS that provides additional financial headroom for its development pipeline and greater financial flexibility.
The facilities will increase the debt maturity by 12 months and with an initial margin of 145 basis points, will reduce the average cost of debt, when fully drawn, to 3.9% from 4.2% currently.
The new loan facilities comprise a five year £350m revolving credit facility and a one-year £150m bridge loan, replacing a £280m secured debt facility. Unite, which provides student accommodation, intends to replace the bridge loan in the first half of next year with longer term unsecured debt to further extend its maturity profile and diversify its finance sources …