LONDON (ShareCast) - Segro has agreed new and amended bank facilities totalling 380m pounds, it revealed on Tuesday, taking advantage of both the improved loan market conditions and its own improved credit strength.

The FTSE 250 listed industrial and warehouse property group has taken a £186m revolving multi-currency, five-year syndicated bank facility, replacing existing facilities totalling €395m.

In addition, the margin and commitment fees have been reduced on an existing revolving multi-currency syndicated bank facility, on which the size has been reduced from €385m to €235m and its maturity has been extended by 18 months to May 2018.

The initial margin payable under both the above facilities is 125 basis points, around 25 basis points lower than the average bank margin payable prior to the refinancing.

As a result of putting the new bank facility, the group has cancelled in full a €240m syndicated facility which was due to mature in December 2015, a €100m bilateral facility which was to mature in July 2014 and a €55m bilateral facility maturing in November 2016.

Justin Read, Segro's Group Finance Director, said: "The signing of these facilities demonstrates the ongoing support of our relationship banks for Segro and its strategy and we look forward to continuing to work with them in the future.

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

The share price rose 0.58% to 331.30p in the first 30 minutes of trading.

NR

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