- Centuria Office Real Estate Investment Trust (COF) has obtained an additional seven-year debt facility from Crédit Agricole
- The new debt facility will increase the REIT’s weighted average debt maturity from 3.4 years to 3.7 years
- It also increases Centuria Office REIT’s undrawn debt to $131.5 million
- At this stage, none of the company’s debt facilities will expire until June 2022 at the earliest
- Centuria Office REIT is trading 1.33 per cent higher today, with shares selling for $1.90 each
Centuria Office Real Estate Investment Trust (COF) has obtained an additional seven-year debt facility from Crédit Agricole.
This now brings the number of the REIT’s debt lenders to five, further diversifying its future debt options.
The extra credit facility will result in a number of changes in the company’s financial position. For starters, it will increase the REIT’s weighted average debt maturity from 3.4 years to 3.7 years, as at April 2020.
It will also increase Centuria Office REIT’s undrawn debt to a total of $131.5 million. As such, the company will maintain a competitive all-in cost of debt at approximately 2.3 per cent.
The new, long-duration debt facility will also have a positive effect on the REIT’s available liquidity. At this stage, none of the company’s debt facilities will expire until June 2022 at the earliest.
The debt facility’s terms include debt covenants of 50 per cent loan-to-value ratio, and a 2.0x interest cover ratio. These terms are the same as those of the REIT’s current existing debt facilities.
Grant Nichols, the Fund Manager at Centuria Office REIT, was very happy to welcome the new debt facility from Crédit Agricole.
“We are pleased to announce COF’s first non-domestic loan agreement with the world’s largest cooperative financial institution, Crédit Agricole.
“The new debt facility provides greater flexibility for the COF balance sheet and enhanced liquidity,” he said.
Crédit Agricole is a French financial services company, consisting of a network of local and regional banks. The company has strong historical ties to the agricultural industry, earning it the nickname ‘la banque verte,’ or ‘the green bank.’ However, Crédit Agricole has since become an international institution, offering services to a variety of industries.
Centuria Office REIT is trading 1.33 per cent higher today, with shares selling for $1.90 each at 11:49 am AEST.