Segro Regulatory News (SGRO)

11 May 2016

SEGRO arranges bank facilities totalling €780 million

SEGRO plc ("SEGRO" or the "Group"), Europe's largest listed owner, asset manager and developer of industrial property, announces that it has agreed amended bank facilities totalling €780 million (£614 million).

The facilities comprise a €610 million‎ syndicated revolving credit facility and two bi-lateral revolving credit facilities of €100 million and €70 million each. The net impact of the changes is a €110 million (£87 million) increase in the unsecured committed bank facilities available to the Group and an increase in their weighted average maturity from 25 months to 57 months (with an option to extend the €610 million facility by a further 24 months).

Based on the Group's currently forecast gearing level at June 30 2016, the margin payable under all three amended facilities will be 95 basis points. This is 27 basis points lower than the average bank margin payable immediately prior to this refinancing and reflects SEGRO's improved credit strength and better loan market conditions.

Besides a reduced commitment fee, the other principal terms and conditions of the facilities are in line with those previously contained in the Group's unsecured committed bank facilities.

The facilities have been put in place with a strong group of long-standing relationship banks plus one new lender and comprises Barclays Bank, Bank of China, BNP Paribas, Bank of America Merrill Lynch, HSBC Bank plc, Lloyds Bank, KBC Bank, the Royal Bank of Scotland, Santander and, for the first time, Wells Fargo. In total, these 10 banks have worked with SEGRO for more than 200 years.

Commenting on these transactions, Justin Read, SEGRO's Group Finance Director, said:

"This refinancing makes our committed bank facilities more cost effective, and smoothes and extends our debt maturity profile. The restructured facilities also provide an appropriate level of funding to support the ongoing delivery of our development strategy, whilst ensuring that SEGRO continues to maintain a strong liquidity position.

"We are grateful for the on-going support of our relationship banks and we look forward to continuing to work with them in the future."

The refinancing was self-arranged by SEGRO. The Royal Bank of Scotland acted as Documentation Coordinator and HSBC Bank plc has been appointed Agent for the €610 million facility.

ENDS

Contact:

Justin Read, Group Finance Director Tel: +44 (0)20 7451 9110

Harry Stokes, Head of Investor Relations and Research Tel: +44 (0)20 7451 9124

Notes to Editors:

Exchange rate on 10 May 2016 is €1.27:£1.

The new facilities comprise:

i) a revolving syndicated credit facility which has been amended and extended to: a) increase the size to €610 million from €225 million ; b) reduce the margin and commitment fee; and, c) extend the maturity to May 2021 (which may be extended to a maximum of 7 years at SEGRO's request and on each bank's approval for their participation);

ii) a €70 million revolving credit facility which has been amended and extended to a) reduce the margin and commitment fee; and, b) extend the maturity to May 2020; and,

iii) a €100 million revolving credit facility which has been amended and extended to a) reduce the size of the facility from €140 million; b) reduce the commitment fee; c) bring the margin into line with the other facilities; and, d) extend the maturity to July 2019.

At the same time, SEGRO has cancelled a €235 million bank facility which was due to mature in May 2018.

About SEGRO: 

SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, asset manager and developer of modern warehousing and light industrial property. It owns or manages 6.0 million square metres of space in £6.8 billion of assets (at 31 December 2015, excluding the office portfolio sold in January 2016; SEGRO's share totals £5.5 billion), serving customers from a wide range of industry sectors. Its properties are located around major conurbations and at key transportation hubs across ten European countries, principally in the UK, France, Germany and Poland.

For further information see www.SEGRO.com/investors