Storage firm Big Yellow Group said it had taken out a new debt facility, at the same time cutting back on its total borrowing.
The company has taken a £190m four year bank facility with Lloyds TSB, HSBC and Santander, which expires in September 2016.
The new debt replaces the group's existing £225m facility, which expires in September 2013 and was provided by the same three banks and HSH Nordbank.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
That has been fully repaid following completion of the refinancing.
The new debt is made up of a £140m term loan, with the remaining £50m a more flexible revolving facility.
The amount of the facility has been reduced to £190m as the group said it no longer needed a higher capacity given its commitment to reduce debt.
The firm's proforma average interest cost of debt is now 4.25%, and the weighted average expiry of the its debt facilities is 7.2 years.
John Trotman, Chief Financial Officer of Big Yellow, said the reduction in the total bank facility was consistent with the company's intention to use surplus cash flow to reduce bank debt over the next 18 months to two years.
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
