New increased bank facilities

RNS Number : 0564I

Safestore Holdings plc

04 March 2010

 



FOR IMMEDIATE RELEASE

                                                                                                                             4 March 2010

Safestore Holdings plc

New increased bank facilities to 2013

Safestore Holdings plc ("Safestore" or "the Group"), the largest self storage retailer in the UK and Paris, is pleased to announce that it has entered into a new increased bank facilities agreement to August 2013 to replace its existing facilities for the United Kingdom and for France which were due to expire in July 2011. These new facilities will allow the company to continue with its stated growth plans of acquiring purpose built stores in high priority locations and replacing older first generation stores with modern self storage centres in prime trading locations.

The principal terms of the refinanced bank agreement include:

·      Increased group facility of £350 million and €40 million to replace the previous facilities of £302 million and €60 million

·      Royal Bank of Scotland plc and HSBC Bank plc acted as Coordinating Mandated Lead Arrangers and Bookrunners

·      The syndicate comprises seven members; four existing relationship lenders: Royal Bank of Scotland; HSBC; Bank of Ireland; Nationwide Building Society and three new syndicate members, Lloyds Banking Group, Santander and BRED Banque Populaire  

·      At drawdown, the new facilities will provide £69 million headroom for investment

·      Principal repayment of £5.0 million due after two years and six-monthly repayments thereafter of £7.5 million

·      Same two key covenants but now set on a Group basis with greater headroom compared to the previous facilities which had these covenants also tested separately for the United Kingdom and France  

·      Interest margin ratcheted between 200 basis points and 300 basis points based on the quarterly interest cover ratios with the first six months at 300 basis points

·      Interest will be hedged for two thirds of the drawn debt and the remainder will be left floating but reviewed on a regular basis. The blended rate is expected to be below 5.5% in the first two years.

·      The Group has incurred circa £8.0 million of arrangement fees and associated costs which will be charged to the income statement over the term of the facility

Steve Williams, Chief Executive Officer, commented:

"It is pleasing that the new increased facilities have been secured from a combination of banks with whom we have enjoyed a long term banking relationship and new lenders. We are delighted with the continuing confidence, commitment and support from our existing lenders and we welcome Lloyds Banking Group, Santander and BRED Banque Populaire to the syndicate.

"These substantially increased facilities, alongside our strong cash generation, will be available to assist with the fundingof the Group's growth. In particular, the funds will help new store acquisitions and the replacement of older generation stores in prime trading areas over the coming years and will provide the Group with additional flexibility and a sound financial structure for the medium term. Safestore, with its strong cash flow characteristics, operating expertise and market leading position, continues to be ideally placed for further progress."

 Ends

For further information, please contact:

Safestore Holdings plc	Tel:[phone]
Steve Williams, Chief Executive
Richard Hodsden, Chief Financial Officer
www.safestore.com
Hudson Sandler	Tel: [phone]
Nick Lyon / Wendy Baker

Notes to editors:

·	Safestore Holdings is the UK's largest self storage group with 95 stores throughout the UK, including 42 within the M25.  In addition, it is the largest operator in central Paris with 22 stores.
·	The Company provides storage facilities to more than 39,000 domestic and business customers.
·	Safestore has a maximum lettable area ("MLA") of 5.4 million sq ft (including the 6 expansion pipeline stores) of which 2.75 million sq ft is currently occupied.
·	As the UK's only national self storage provider, Safestore is uniquely positioned to meet the needs of companies requiring a national service.
·	A strong balance sheet and operational cash flow allow Safestore to invest in continual improvements in the operational performance of its stores, in new store development and acquisitions where appropriate.
·	Safestore employs around 500 people in the UK and Paris.

Any statements made in this announcement that are not based on current or historical facts are forward-looking in nature. Such forward-looking statements are based on current expectations and by their nature are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. These forward-looking statements are made only as at the date of this announcement. Except as required by law, Safestore has no responsibility or obligation to update publicly or revise any of the forward-looking statements contained herein.

 

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