Safestore notes refinancing on improved terms?SAFE

Safestore Holdings announces the refinancing of its US Private Placement Notes (USPP) and an amendment and extension of its existing bank facilities to extend the average maturity.

It also served to lower the cost of the group's debt financing.

US Private Placement Notes:

- The existing $65.6m 5.83%1 2019 USPP and $47.3m 6.74%1 2024 USPP will be repaid in full

- New Euro and Sterling denominated USPP will be issued with the following tenor and coupons: €50.9m 7 year notes at coupon of 1.59%; €74.1m 10 year notes at coupon of 2.00%; £50.5m 12 year notes at coupon of 2.92%.

Amendment and Extension of Bank Facilities:

- Existing UK and Euro revolving credit facilities are extended by two years from June 2020 to June 2022 with an option (on an uncommitted basis) to extend for a further year with the existing £126m term loan cancelled.

- The amended facilities will comprise: a £190m revolving credit facility of which c.£120m will be drawn; a €70m revolving facility of which c.€46m will be drawn.

- The margin on the amended facilities will be reduced by 25 bps from 150 bps to 125 bps.

- Similarly, the non-utilisation fee on the undrawn facilities reduces from 0.6% to 0.5%.

- The Group also has the option (on an uncommitted basis) to increase the quantum of the sterling revolving credit facility by £60m.