Shaftesbury announces £135m loan with Canada Life Investments

Guy Bentley
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West end landlord Shaftesbury has announced a £135m 15-year loan with Canada Life Investments (CLI) and completion of refinancing with Lloyds Banking Group.

The loan is set to be repayable in full maturity in May 2029, and has been secured on properties held in a subsidiary company. The deal will have a fixed interest rate throughout the term.

Shaftesbury will cancel its £100m revolving credit facility with the Bank of Scotland (BoS), which was set to expire in September 2016.

A portion of the proceeds of the CLI loan will be used to repay the drawings under the BoS facility and meeting the cost of ending the £100m of interest rate swaps agreed with BoS.

The cost of ending the swap arrangements is expected to reach £29m. The company will also see its revolving credit facility with Lloyds rise by £25m to £150m. Shaftesbury announced that a £30m short-term credit facility entered into with Lloyds in February 2014 has now been cancelled.

"We are delighted to have entered into this long-term relationship with Canada Life Investments, a new lender to the Group, as well as completing the restructuring of our arrangements with Lloyds Banking Group," said Shaftesbury finance director, Christopher Ward.