Revolving bank facility
The Group signed a £450 million unsecured revolving credit facility (RCF) on 11 October 2018. The facility has an initial five year term which may be extended to a maximum of seven years at GPE's request, subject to bank consent.
The financial covenants in respect of this facility 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 92.5 - 152.5 basis points (over LIBOR).
As at 30 September 2018, the Group was undrawn on the new facility.