NewRiver (LSE:NRR) agreed a new unsecured £240m facility comprising a £120m Term Facility Commitment and a £120m Revolving Credit Facility, with margins of 190bp and 175bp respectively and commitments from Barclays, HSBC, NatWest and Santander.
The £120m Term Facility, maturing April 2030 with extension options to April 2033, can be drawn until end-January 2027 and will be used alongside existing cash to refinance the secured £140m Mall Facility. Delaying drawdown preserves the Mall Facility’s attractive 3.5% coupon to January 2027.
Prior to drawdown, NewRiver will pay a commitment fee expected to cost c.£0.6m in FY27 versus an estimated £2.0m if drawn immediately, a c.£1.4m saving that the company says flows through to shareholders given its dividend policy is linked to Underlying Funds From Operations. Hedging is expected before drawdown.
The £120m RCF matures April 2031 (extendable to 2033), is £20m larger than the facility it replaces and pushes the maturity out from November 2026. All four existing lenders increased commitments from £25m to £60m each, which NewRiver frames as a vote of confidence.
"We've refinanced both the Mall Facility and the existing Revolving Credit Facility in a single transaction with the full support of our existing lenders, extending our debt maturity at a reduced margin and on a fully unsecured basis," said Will Hobman, Chief Financial Officer.
NewRiver notes it holds over £200m of cash and available liquidity and will next focus on its £300m unsecured bond maturing in March 2028.
