CHARTER Hall Retail REIT has secured an extension of its Polish debt facility from the December 2011 maturity to July 2014.
The key terms of the amended facility include an immediate reduction in the margin from 2.75% to 2.50%; an equity injection of €12 million (approximately $A16.4 million), reducing the facility to €131.9 million, and nominal quarterly amortisation payments; a loan to value covenant waiver until December 2011; an LTV covenant of 80% from December 2011 to maturity, against an LTV of 69.3% post equity injection; and an unchanged security pool interest cover ratio covenant of 1.10x.
CQR’s CEO Steven Sewell said following the extension and other capital management initiatives implemented over the past year, the trust has refinanced approximately $700 million of debt with a resulting material reduction in future interest expense for investors.
Australian Property Journal
