Capital Shopping signs new finance deal with banks

Capital Shopping Centres (CSC), the FTSE 100 real estate investment trust focused on the retail sector, has put in place a £375m revolving credit facility which will be used to "provide general group liquidity".

The company, which owns the Trafford Centre and Lakeside, says the new facility has a minimum term of five years and replaces the existing undrawn facility of £248m which is due to expire in June 2013.

It has an initial margin over the London Interbank Offered Rate (LIBOR) of 175 basis points and is expected to reduce its all-in rate (when accounting for margin and utilisation fees) by 25-50 basis points compared to the previous facility.

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"I am delighted that we have agreed a significantly larger facility with a strong syndicate of banks. At the same time, we have reduced our all-in rate. This is testament to the high quality of CSC's UK regional shopping centre assets and income stream," said finance director Matthew Roberts.

"The new facility provides us with considerable flexibility over the next five years, potentially seven, and underpins our robust financing position."

The five-year term may be extended by a further two years at the option of the lenders.

BC