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21. Mai 2012     Print Print 

Hercules Unit Trust signs £350 million financing

Hercules Unit Trust has signed a new £350 million five year loan facility provided by Lloyds TSB Bank PLC, Metropolitan Life Insurance Company (MetLife) and The Royal Bank of Scotland plc (RBS).


The £250 million term loan, provided in equal shares by MetLife and RBS, will be used to fully repay the existing credit facility three months before it expires in October 2012. The interest rate on the term loan has been swapped to a fixed rate, resulting in an all-in rate including margin and arrangement fees below the fixed interest rate under the existing financing.

A further £100 million revolving loan has been provided by Lloyds and will provide flexibility for Hercules in respect of acquisitions, capital projects, disposals and general business purposes.

Lloyds, MetLife and RBS acted as Arrangers of the new facility and RBS acted as Co-ordinator. Lloyds will act as Facility Agent and Security Agent.

When combined with the £350 million financing signed in September 2011 and the £150 million financing signed by The Gibraltar Limited Partnership in March 2012, Hercules and its joint venture partners have now raised £850 million of loan facilities within the last nine months. These will be used to refinance maturing facilities and provide funding for future capital projects, including extensions to a number of retail parks in the Hercules portfolio.

"As a result of these financings, the weighted average interest rate of Hercules’ share of gross debt has reduced from 6.0% pa in September 2011 to 3.8% pa assuming that the revolving elements of the new facilities are fully drawn“, said the company.