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Shaftesbury announces new financing arrangements

Released 07:01 22-Apr-2014

RNS Number : 1204F
Shaftesbury PLC
22 April 2014

Shaftesbury PLC

Shaftesbury announces 15 year loan with Canada Life Investments and completion of refinancing with Lloyds Banking Group

Shaftesbury PLC ("the Company") announces that it has arranged a new £134.75 million fifteen year term loan with Canada Life Investments ("CLI"). The loan is secured on certain properties held in a subsidiary company and has a fixed interest rate throughout the term.  The loan is repayable in full at maturity in May 2029.


On drawing  the loan from CLI, the Company will cancel its £100 million revolving credit facility with Bank of Scotland Plc ("BoS"),which was due to expire in September 2016. Part of the proceeds of CLI loan will be applied to repaying drawings under the BoS facility and meeting the cost of terminating £110 million of interest rate swaps entered into with BoS. The cost of terminating those swap arrangements amounted to £29.0 million, equivalent to 10p per share. The balance of proceeds from the CLI loan (net of arrangement costs) will be used to repay existing indebtedness drawn under other revolving credit facilities. Such amounts will be available for re-drawing.

Following the cancellation of the BoS facility, the Company's revolving credit facility with Lloyds Bank plc ("Lloyds"), which matures in November 2018, will be increased by £25 million to £150 million.   

A £30 million short-term credit facility entered into with Lloyds in February 2014 has now been cancelled.

Together, these transactions have increased the Group's financial resources, improved the maturity profile of its debt and diversified its sources of finance. On a pro-forma basis, reflecting these transactions, the weighted average maturity of the Group's debt at 30 March 2014 has increased from 5.6 years to 7.6 years.

Christopher Ward, Finance Director, said, "We are delighted to have entered into this long-term relationship with Canada Life Investments, a new lender to the Group, as well as completing the restructuring of our arrangements with Lloyds Banking Group.

The quality of our assets and the security of their income streams continue to prove attractive to existing and potential new lenders." 

22 April 2014

For further information:

Shaftesbury PLC 020 7333 8118

Broker Profile 020 7448 3244

Brian Bickell, Chief Executive

Chris Ward, Finance Director


Simon Courtenay


About Shaftesbury

Shaftesbury PLC is a Real Estate Investment Trust, which invests exclusively in London's West End.  Our wholly owned portfolio extends to around 14 acres of freeholds.  At 30 September 2013 it included 330 shops and 234 restaurants, bars and cafés, which together accounted for 70% of its current income. The 386,000 sq. ft. of offices and 470 apartments in the wholly owned portfolio provided 17% and 13% respectively of its current income. 


In addition, it has a 50% interest in the Longmartin joint venture with The Mercers' Company, which has a long leasehold interest in St Martin's Courtyard in Covent Garden. Extending to 1.9 acres, it includes 24 shops, eight restaurants, 102,000 sq. ft. of offices and 75 apartments.


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Shaftesbury announces new financing arrangements - RNS