Big Yellow refinances and cuts debt

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.

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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.