NewRiver REIT plc had agreed a new unsecured GBP 240 million facility comprising a GBP 120 million Term Facility Commitment and a GBP 120 million Revolving Credit Facility. The new facility achieved NewRiver's aims to extract maximum benefit from its current debt structure while improving its debt maturity profile and ultimately allowed the Company to return to a fully unsecured debt structure once the Term Facility Commitment is drawn. All four existing lenders had increased their commitments, reflecting NewRiver's investment-grade credit rating and the quality of its portfolio.
Unsecured GBP 120 million Term Facility Commitment matured in April 2030 (four years committed term). Option to extend by three additional one-year terms (to April 2033), subject to lender approval. Margin of 190 basis points at the current LTV level.
Available to be drawn until the end of January 2027 and would be used, alongside existing significant cash resources, to refinance the secured GBP 140 million Mall Facility. The secured GBP 140 million Mall Facility was retained following the acquisition of Capital & Regional plc in December 2024, principally due to its attractive 3.5% coupon, which ran until January 2027. After that date, and until its maturity in January 2028, the Mall Facility would revert to a floating rate with a margin that was higher than the margin agreed under the Term Facility Commitment.
Delaying drawdown of the Term Facility Commitment until January 2027 therefore allowed NewRiver to extract maximum value from the Mall Facility's 3.5% coupon. Prior to drawing the Term Facility Commitment, NewRiver would pay a commitment fee based on a percentage of the margin, which was expected to cost GBP 0.6 million in Fiscal Year 2027. This compared to an estimated GBP 2.0 million over the same period if the facility were to be drawn immediately, a saving of approximately GBP 1.4 million.
NewRiver's dividend policy, which was linked directly to Underlying Funds From Operations, meant that this saving flowed through to shareholders. Hedging was expected to be put in place prior to drawing the Term Facility Commitment. Once drawn, NewRiver would once again have a fully unsecured balance sheet.
Unsecured GBP 120 million Revolving Credit Facility matured in April 2031 (five years committed term). Option to extend by two additional one-year terms (to April 2033), subject to lender approval. Margin of 175 basis points at the current LTV level, with utilisation fees applied if the Revolving Credit Facility was above one third drawn.
A significant margin reduction versus the existing Revolving Credit Facility. The new GBP 120 million Revolving Credit Facility was GBP 20 million larger than the facility it replaced and extended the maturity from November 2026 to April 2031. The increased commitments from all four existing lenders, Barclays, HSBC, NatWest and Santander, from GBP 25 million to GBP 60 million each, was a clear vote of confidence in NewRiver's investment-grade credit rating and the quality of its underlying portfolio.
NewRiver was advised on the refinancing by Rothschild & Co. The next stage of refinancing would focus on the GBP 300 million unsecured corporate bond, which matured in March 2028. With over GBP 200 million of cash and available liquidity and an improved maturity profile, NewRiver was well placed to manage that process from a position of strength.
