Nordic-listed retail property specialist Citycon has secured a SEK 1.02 bn (€89.5 mln) fixed-rate green term loan from pbb Deutsche Pfandbriefbank (pbb) and Landesbank Hessen-Thüringen Girozentrale (Helaba).
The 7-year loan is fully secured by Liljeholmstorget Galleria in Stockholm, Sweden, and will be used to refinance the company's existing debt and for general financing needs.
Bret McLeod, CFO of Citycon, said: ‘The new 7-year term loan highlights Citycon’s access to debt financing with competitive terms and provides evidence that the secured loan market is functioning well. Additionally, the loan provides liquidity to continue to improve our maturity schedule and our balance sheet as the proceeds from the term loan will be used to refinance the company’s near-term maturities.’
Citycon refinanced and increased its credit facility from €500 mln to €650 mln in April. This included a €400 mln revolving credit facility and a €250 mln term loan. Since then, the company has used the proceeds from the refinancing to repurchase €236 mln of its bonds that are maturing soon.
By securing the loans, Citycon is able to mitigate the impact of higher interest rates on its earnings and improve its overall balance sheet.
Last December, Citycon sold €120 mln in non-core assets. as part of the plans to divest €500 mln worth of non-core assets. Citycon is currently in advanced discussions with multiple potential buyers to sell the remaining €380 mln worth of assets.
Citycon's assets total approximately €4.2 bn, and its 33 mixed-use centers are located in major urban hubs in the Nordics and Baltics, adjacent to public rail/bus transportation hubs.