NSI, an Amsterdam-listed landlord with a €1 bn office portfolio, has reduced its cost of debt with a €480 mln refinancing agreement.
NSI has refinanced its unsecured syndicated loan with ABN Amro, Belfius, Deutsche Bank, ING and Rabobank with lower margins than its previous loan. The new maturity is for a 5-year term.
Following the move, NSI’s average debt maturity increases to 5.5 years from 3.1 years at end-December 2017. The lower margin, reflecting an implied investment grade credit rating, cuts the cost of debt to 1.9%, from 2.3% previously.
NSI said that the new refinancing fitted its strategy to extend its debt maturities, whilst lowering the total cost of funding. 'With the first loans now maturing in April 2023, an LTV at the end of March of 37.2% and 84% of the interest costs fixed or hedged, NSI has a solid balance sheet to support its strategy and planned development pipeline in the years to come,' the company said.
The term loan has been reduced to €180 mln while the Revolving Credit Facilities (RCF) have been merged and increased to €300 mln, to provide more flexibility in the current asset rotation program. Both the term loan and the RCF now expire in April 2023. The RCF includes an option to increase the maturity twice by one year, to ultimately April 2025.
In line with NSI’s hedging policy new swap contracts will be agreed to match with the underlying funding.
NSI was advised by Axeco Corporate Finance and NautaDutilh. Rabobank acted as documentation agent.
NSI is the only listed real estate investment trust (REIT) focused on well-located offices in economic growth regions in the Netherlands.