Tritax Big Box issues €565m unsecured bond to pay back loans

UK logistics REIT Tritax Big Box has announced plans to issue its debut senior unsecured bond with a volume of £500 mln (€565 mln) and an average term of 11.5 years.

The notes are being issued on 14 December and will be listed on the Irish Stock Exchange. The issue consists of two equal tranches with the 2026 tranche bearing interest at a rate of 2.625% and the 2031 tranche bearing an interest of 3.125%.

Tritax Big Box also said it is getting a new £350 mln unsecured revolving credit facility from a syndicate including Barclays Bank, BNP Paribas, HSBC Bank, ING Bank, The Royal Bank of Scotland, Santander and Wells Fargo Bank.

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7 December 2017

Outlook 2018: Europe & UK Investment Briefing
Taylor Wessing UK, 5 New Street Square, London
| 08:00 - 10:30

Panel: Jos Short (Internos), Michael Walton (Rynda), Michael Neal (TH Real Estate), James Raynor (Grosvenor Fund Management), Simon Martin (Tristan Capital Partners), William Matthews (Knight Frank) and Mark Rajbenbach (Taylor Wessing)

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The loan, with a margin of 1.1% over Libor, will have an initial maturity of five years and can be extended by two further years to a maximum maturity of seven years.

As a result of these two transactions, the company will repay the entirety of its secured debt load, while nearly doubling its weighted average debt maturity from 4.5 years to 8.4 years.

The company’s weighted average running cost of debt will become 2.38% and will primarily comprise fixed rate debt.

Colin Godfrey, Partner of Tritax, commented: 'This well supported refinancing and additional fire-power raised from the unsecured debt capital markets offers the company a highly attractive cost of debt, nearly doubles our average maturity profile and provides enhanced operational flexibility. It also provides an additional source of liquidity to support the future growth of the company.'

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