10 Oct 2011 07:00
10 October 2011
Treveria plc
("Treveria" or the "Group")
Treveria plc agrees extension of up to three years for the Silo E facility (€421 million) with Hatfield Phillips
Treveria plc is pleased to announce that its Silo E subsidiary has now signed an agreement with Hatfield Phillips (the "Servicer"), acting on behalf of the lenders to Silo E, whereby the loan will be extended for up to three years. The extension comprises an initial period of 12 months with options for the lender to extend for two further successive periods of 12 months each, contingent on the borrowers meeting pre-agreed financial targets and complying with certain on-going covenants and conditions. This follows the standstill agreement to the Silo E facilities which was announced in July 2011 and put in place to allow completion of the agreement of the necessary extension terms.
The terms of the extension will allow Treveria Asset Management ("TAM") to benefit from its role as asset manager and provides incentivisation for the successful execution of selective disposals in order to de-leverage the portfolio.
Silo E will remain fully independent with its cashflow to be used to pay all operating costs, including the management fees to TAM, and to fund a capex programme in line with Treveria's strategy for active asset management to lower the loan-to-value ratios in all silos to 65% by 2014.
The extension has the clear support of the Servicer to help Treveria to continue its restructuring and provides proof of the successful implementation of Treveria's continued commitment to asset management, active tenant management and a successful work-out of the loan over the next three years.
Commenting Bernhard Fuhrmann, CEO of Treveria Asset Management, welcomed the facility extension, said:
"The extension of the Silo E facility represents a significant step forward for the Group, and improves the overall stability of Treveria's capital structure. We can now focus on growing value for all of our stakeholders and improving the quality of our real estate through careful investment."
N M Rothschild & Sons Ltd and Norton Rose LLP advised the Group for the duration of the process.
Enquiries:
Treveria Bernhard Fuhrmann | +49 (0) 69 2475 31998 |
FTI Consulting Richard Sunderland / Laurence Jones | +44 (0) 20 7831 3113 |
Singer Capital Markets Limited James Maxwell / Nick Donovan | +44 (0) 20 3205 7500 |