New Bank Facilities

RNS Number : 0972O

Big Yellow Group PLC

08 October 2012

 



Big Yellow Group PLC

8 October 2012

New £190 million 4 year bank facility

Big Yellow Group PLC ("the Group" or "Big Yellow") announces that it has entered into a new £190 million 4 year bank facility with Lloyds TSB, HSBC and Santander, expiring in September 2016.  £140 million of the facility is term loan with the balance of £50 million revolving. 

This facility replaces the Group's existing £225 million facility, expiring in September 2013, which was provided by the same three banks and HSH Nordbank, who have been fully repaid following completion of this refinancing.  The amount of the facility has been reduced to £190 million as the Group no longer needs a higher capacity given its commitment to reduce debt.

The facilities attract a ratcheted margin over LIBOR based on interest cover.  The Group is currently paying a blended 2.4% margin, the lowest margin on the ratchet, which is effective for income cover of greater than 3 times. 

The Group has an historic interest rate swap of £90 million fixed at 2.99% plus margin until September 2015.  As part of this refinancing, we have cancelled £20 million of this interest rate swap at a cost of £1.47 million.  The remaining £70 million interest rate swap has been extended to September 2016 at a fixed rate of 2.8% plus margin. The £108 million balance drawn accrues interest at variable rates based on one month LIBOR plus margin.  The 15 year £100 million loan with Aviva pays a fixed coupon of 4.9%. 

Total fees are estimated at £3.2 million.  After payment of transaction fees and the swap cancellation, £178 million of the £190 million facility was drawn on completion.  The Group's proforma net debt is £275 million. 

Following this refinancing, the Group's proforma average interest cost of debt is 4.25%, and the weighted average expiry of the Group's debt facilities is 7.2 years. 

John Trotman, Chief Financial Officer of Big Yellow commented:

"We are delighted to have arranged this new bank facility with our existing group of banks which, allied to the 15 year loan from Aviva, provides a blend of medium and long term financing for the Group at an attractive all in cost.  The reduction in the total bank facility is consistent with our intention to use surplus cash flow to reduce bank debt over the next 18 months to two years."  

For further information, please contact:

Big Yellow Group PLC          01276 477811

James Gibson, Chief Executive Officer

John Trotman, Chief Financial Officer

Weber Shandwick Financial  020 7067 0700

Nick Oborne, John Moriarty

Notes to Editors

Big Yellow Group PLC is the best known and one of the most dynamic self storage groups in the UK.  It was founded in September 1998 by Nicholas Vetch, Philip Burks, and James Gibson and listed on AIM in May 2000, moving to the Official List of the London Stock Exchange in June 2002. 

Big Yellow has expanded rapidly and now operates from 66 stores, 58 in London and the South, two in Sheffield, and one each in Birmingham, Edinburgh, Leeds, Liverpool, Nottingham and Stockport. We own a further four development sites, of which three have planning. Of the 70 total stores and sites, 59 are held freehold and four long leasehold (together representing approximately 94% by value of the total property assets); seven stores are held short leasehold.  All the stores have distinct yellow branding, with the majority being within the M25 or in strong urban conurbations.  The Group currently operates from a platform of 4.2 million sq ft.  When fully built out the portfolio will provide approximately 4.4 million sq ft of flexible storage space. 

The Group has pioneered the development of the latest generation of self storage facilities, which utilise state of the art technology and are located in high profile, accessible, main road locations.  Its focus on the location and visibility of its buildings, coupled with excellent customer service, has created the most recognised brand name in the UK self storage industry.

 

END

 

 

MSCEASESELPAFFF