Kiwi Income Property Trust's average cost of debt will increase by approximately 50 basis points after it renews and extends its banking facilities.Its manager, Kiwi Income Properties Ltd, said the trust has renewed and extended $302.5 million of bank deb
Kiwi Income Property Trust's average cost of debt will increase by approximately 50 basis points after it renews and extends its banking facilities.
Its manager, Kiwi Income Properties Ltd, said the trust has renewed and extended $302.5 million of bank debt facilities due to expire in April and May 2011.
The trust maintains $800m of committed debt facilities by way of bilateral agreements with the four leading Australian-owned banks. The renewed facilities are for terms of between 3.3 years and 5.4 years.
Following the extensions, the allocation of facilities will be $140 million to ANZ, $220m to BNZ, $300m to CBA and $140m to Westpac.
As at September 30, the trust had undrawn debt facilities of $222m.
The trust said that although its cost of debt will increase from December 20, it had avoided the very high rates and onerous terms seen at the peak of the financial crisis.
The banks have also agreed to release the mortgages held over the Sylvia Park land that are held by BNZ as security agent. In addition, the loan to value ratio was favourably amended to exclude the fair value of unrealised interest rate derivatives from the calculation.
