(Alliance News) - Intu Properties PLC on Wednesday said it has agreed terms for amending and extending its current loan facility by three years at a reduced amount.
Shares in Intu were down 6.7% at 13.95 pence in London and down 3.6% at ZAR2.70 in Johannesburg.
The revised four-year revolving credit facility amount will be GBP440 million and expires 2024, replacing the company's previous GBP600 million facility set to expire October 2021.
However, the revised facility is conditional upon Intu raising at least GBP1.3 billion of equity. Intu said it is working with its corporate brokers, UBS Group Ag and BofA Securities, as well as financial adviser Rothschild & Co, on the equity raise and will update the market when posting its results on March 5.
The revised facility is to be provided ball of banks participating in its current loan - HSBC Holdings PLC, Lloyds Banking Group PLC, Bank of America Corp, Barclays PLC, Credit Suisse Group AG, UBS Group AG, and National Westminster Bank PLC.
Into Chief Executive Matthew Roberts said: "This extension of our [revolving credit facility] is a key milestone in addressing our near-term refinancing needs. It also underlines the continued support we have from our relationship banks. This revised RCF will extend the maturity profile and be used to provide general liquidity for intu.
"Fixing the balance sheet remains our number one priority and we remain engaged with shareholders and potential new investors in relation to the intended equity raise."
By Anna Farley; annafarley@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
