Big Yellow Group PLC Increase in debt facilities (0095P)

TIDMBYG

RNS Number : 0095P

Big Yellow Group PLC

14 October 2021

14 October 2021

Big Yellow Group PLC

("Big Yellow", "the Group" or "the Company")

Increase in debt facilities

The Group is pleased to announce an increase of GBP100 million in its loan facilities with Aviva Investors ("Aviva") and M&G Investments ("M&G").

Aviva loan facility

The Group has secured an additional GBP50 million seven year debt facility with Aviva.

As part of this refinancing the expiry of the existing loan has been extended from April 2027 to September 2028. This has reduced the fixed cost of the total Aviva loan facility from 4.0% to 3.5%.

Sustainability KPIs have been incorporated into this additional borrowing. These include the continued installation of solar panels across the security stores which will reduce emissions and running costs, and the business being on-track to achieve 'Net Renewable Energy Positive' status by 2030. The Group will benefit from a margin reduction on the new GBP50 million loan, conditional on achieving these targets.

The total debt facilities from Aviva are now GBP163.4 million of which GBP18.4 million amortises to nil by April 2027.

M&G loan facility

The Group has increased the facilities of its M&G loan by GBP50 million to a total facility of GBP120 million. GBP35 million of the total M&G loan is fixed by a way of swap, with the balance floating. The average cost of the M&G loan is now 2.4%, with the loan expiring in June 2023. The Group intends to commence discussions on refinancing this loan next year.

John Trotman, Chief Financial Officer of Big Yellow commented:

"We are pleased to have continued our long-standing relationships with Aviva and M&G by agreeing these increases to our existing facilities.

We have put in place our second green loan with Aviva, which will reward the Group via a margin reduction as we implement our Net Renewable Energy Positive plan that was published in June this year.

These new facilities provide the Group with total facilities of GBP576 million, with current headroom of cash and undrawn bank facilities of over GBP175 million. In addition, the Group has land surplus to its needs which will be realised over the medium term, generating net cash proceeds estimated currently at over GBP100 million. The average cost of debt on drawn facilities is now 2.8% and the marginal cost of RCF bank debt remains at 1.35%."

Enquiries:

 
 Nicholas 
  Vetch,          Executive Chairman    01276 477811 
                  Chief Executive 
 James Gibson,     Officer              01276 477811 
                  Chief Financial 
 John Trotman,     Officer              01276 477811 
 
 Teneo                                  0203 603 5221 
 Ben Foster 
 Matt Denham 
 

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October 14, 2021 02:00 ET (06:00 GMT)