Big Yellow Group has entered into a new £100m 15-year loan with Aviva Commercial Finance.
The loan is secured over a portfolio of 15 freehold self-storage centres valued at £242.1m at 29 February 2012.
The annual fixed interest rate on the loan is 4.90%.
The new 15-year term loan has been deployed to repay and cancel £100m of the group's core bank debt facility, reducing it to £225m of which £190m is drawn.
This facility expires in September 2013 and is secured on the remainder of the group's self-storage centres.
The repayment and cancellation has been disproportionately applied against HSH Nordbank's commitment which has been reduced from £150m to £65m.
The group has cancelled £100m of interest rate derivatives at a cost of £9.2m.
In addition to the Aviva fixed rate loan, there is a residual £90m interest rate swap in the core bank debt facility at 2.99% plus margin to September 2015, with the remaining £100m of the core bank debt paying at floating rates plus margin.
The group says: "As a result of this transaction, we have repaid £100m of bank debt which was costing 4.8% per annum, with a 15 year loan fixed at 4.9% per annum."
The group's proforma average cost of debt remains at 3.7%.
At 8:02am: (LON:BYG) Big Yellow share price was +2.2p at 283.2p
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