Tritax Big Box secures £550m in new bank loans

(Sharecast News) - Distribution centres investor Tritax Big Box REIT has secured a £550m in new ban loans, refinancing older credit facilities to support the "ongoing delivery of our strategic objectives". The company has entered into a new £400m unsecured revolving credit facility (RCF) over an initial five-year term with a syndicate of 12 lenders, including ABN AMRO, Bank of America and Barclays, refinancing its existing £300m RCF due to mature next June.

The RCF may be extended to a maximum of seven years, and also contains an option to increase the loan by £200m. It has the same margin ratchet as the existing loan, but the interest rate margin will reduce if the company receives a credit rating upgrade in the future from rating agencies Moody's, S&P or Fitch.

The funds will be used for general corporate purposes, as well as to support investment and development activities.

Tritax Big Box also announced a £150m loan with Barclays which matures in October 2027 and can be extended by a further three years, refinancing an existing loan with the same bank. It also contains the same margin reduction mechanism if the company benefits from a rating upgrade.

"The new £400m RCF will increase available liquidity and supports our ongoing ability to execute our strategy, including our attractive logistics and data centre development opportunities whilst maintaining an average cost of debt in line with the level we reported at FY24," said chief financial officer Frankie Whitehead.

"Our strong balance sheet provides us with financial flexibility while our debt maturity profile remains well diversified by both source and by maturity."