Revolving bank facility
The Group signed a £450 million unsecured revolving credit facility on 30 October 2014. The facility had an initial five year term which has been extended to seven years, taking the maturity out to October 2021.
The financial covenants in respect of this are as follows:
- The ratio of Consolidated Net Borrowings to Consolidated Shareholders’ Funds must not exceed 1.25:1
- The ratio of Unencumbered Asset Value to Consolidated Unsecured Borrowings must not be less than 1.66:1
- The ratio of Consolidated Profits Before Interest and Tax to Consolidated Net Interest must not be less than 1.35:1
The margin payable on the facility depends on a ratchet mechanism based on the ratio of Consolidated Net Borrowings to Consolidated Shareholders’ Funds. The margin ratchet is 105 - 165 basis points (over LIBOR).
As at 31 March 2017*, the Group was undrawn on the new facility.
*Pro forma for US Private Placement refinancings, deferred proceeds from the sale of 73/89 Oxford Street and Rathbone Square (commercial) and special dividend.