REG - Supermarket Inc REIT - £170 MILLION DEBT REFINANCING UPDATE

Supermarket Income REITAnnouncement

26/07/2024 07:00

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RNS Number : 9281X  Supermarket Income REIT PLC  26 July 2024

26 July 2024

 

SUPERMARKET INCOME REIT PLC

(the "Company")

 

£170 MILLION DEBT REFINANCING UPDATE

 

Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust
providing secure, inflation-linked, long income from grocery property,
announces the completion of a £170 million 1  refinancing through its first
private placement debt issuance and a new unsecured bank facility.

 

€83 million private placement debt issue

 

The Company has signed and completed an agreement with a group of
institutional investors for a private placement of €83 million of new senior
unsecured notes (the "Notes"). The Notes have a maturity of seven years and a
fixed rate coupon of 4.44%.

 

The Notes were priced on 11 July 2024 and the note purchase agreement was
signed on 25 July 2024. Proceeds were received on 25 July and will be used to
refinance euro drawings under an existing secured revolving credit facility
with HSBC, which had been used to fund the recent acquisition of a portfolio
of 17 stores from Carrefour.

 

£100 million debt refinancing

 

The Company has also refinanced its existing £97 million secured debt
facility with Deka through a new £100 million unsecured debt facility with
ING Bank N.V., London Branch ("ING").

 

The new ING facility (the "Facility") comprises a £75 million term loan and a
£25 million revolving credit facility. The interest-only Facility has a
maturity of three years and has two one-year extension options at the lender's
discretion. The Facility is priced at a margin of 1.55% over SONIA and
benefits from forward starting hedges, which cap the interest rate at an
all-in cost of 3.0% until January 2026.

 

Following the debt refinancing, the Company has a pro-forma LTV of 37%.

 

Ben Green, Director of Atrato Capital Limited, the Investment Adviser to
Supermarket Income REIT, said: 

 

"We are very pleased at the support we have received from new institutional
investors both for the Company's new unsecured private placement and for the
refinancing of the secured facility.

 

The quality of our portfolio continues to appeal to new lenders and allows the
Company to access debt financing on favourable terms."

 

The securities offered have not been registered under the Securities Act of
1933 and may not be offered or sold in the United States absent registration
or an applicable exemption from registration requirements.

 

 1  Including €83 million Private Placement converted at €1.19 to £1

 

 FOR FURTHER INFORMATION                                                                           
 Atrato Capital Limited                                                                           +44 (0)20 3790 8087 
                                  
 Steve Noble / Rob Abraham / Mike Perkins /                                                       ir@atratocapital.com  

 Chris McMahon

 Stifel Nicolaus Europe Limited                                                                   +44 (0)20 7710 7600 
 Mark Young / Rajpal Padam / Madison Kominski                                                      
                                                                                                   
 Goldman Sachs International                                                                      +44 (0)20 7774 1000

 Tom Hartley / Hannah Mackey

 FTI Consulting                                                                                   +44 (0)20 3727 1000 

  
 Dido Laurimore / Eve Kirmatzis / Andrew Davis                                                    SupermarketIncomeREIT@fticonsulting.com  

NOTES TO EDITORS: 

Supermarket Income REIT plc (LSE: SUPR) is a real estate investment trust
dedicated to investing in grocery properties which are an essential part of
the feed the nation infrastructure. The Company focuses on grocery stores
which are omnichannel, fulfilling online and in-person sales. The Company's
supermarkets are let to leading supermarket operators in the UK and Europe,
diversified by both tenant and geography. 

 

The Company provides investors with attractive, long-dated, secure,
inflation-linked, growing income with the potential for capital appreciation
over the longer term.

 

The Company is listed on the premium segment of the Official List of the UK
Financial Conduct Authority and its Ordinary Shares are traded on the Main
Market of the London Stock Exchange, having listed initially on the Specialist
Fund Segment of the Main Market on 21 July 2017.

 

 

Atrato Capital Limited is the Company's Investment Adviser. 

 

Further information is available on the Company's website
www.supermarketincomereit.com (http://www.supermarketincomereit.com/)  

 

LEI: 2138007FOINJKAM7L537 

 

 

Stifel Nicolaus Europe Limited, which is authorised and regulated in the
United Kingdom by the Financial Conduct Authority, is acting exclusively for
Supermarket Income REIT plc and no one else in connection with this
announcement and will not be responsible to anyone other than the Company for
providing the protections afforded to clients of Stifel Nicolaus Europe
Limited nor for providing advice in connection with the matters referred to in
this announcement.

Goldman Sachs International, which is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential
Regulation Authority in the United Kingdom, is acting exclusively for
Supermarket Income REIT plc and no one else in connection with this
announcement and will not be responsible to anyone other than the Company for
providing the protections afforded to clients of Goldman Sachs International
nor for providing advice in connection with the matters referred to in this
announcement.

 

 

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