LONDON (ShareCast) - (Sharecast News) - Sirius Real Estate announced on Tuesday that it has secured a new €150m unsecured revolving credit facility from a consortium of three banks, providing it with additional funding flexibility for acquisitions and efficient cash management as it navigates upcoming bond refinancing windows.
The FTSE 250 company said the facility, carrying an initial three-year term and two one-year extension options, included accordion features that would allow it to increase the size by up to €100m, subject to lender consent.

It said the margin was set at 120 basis points over short-term Euribor, translating to a potential interest rate of around 3.2% at current levels.

The consortium brought BNP Paribas into Sirius' lender group for the first time, and marked the return of ABN Amro after more than a decade, alongside existing banking partner HSBC.

Panmure Liberum acted as debt adviser on the transaction.

Sirius said the new facility would strengthen its ability to pursue a robust acquisition pipeline in Germany and the UK while managing liquidity more effectively.

The group said it was continuing to explore lower-cost debt options available through German local banks in connection with future asset acquisitions.

"Along with our recent equity fundraise and bond issuance, this facility provides us with further flexibility to capitalise on our exciting pipeline of opportunities in Germany and the UK," said chief financial officer Chris Bowman.

"It also further diversifies our debt by adding BNP Paribas and ABN Amro to our current pool of relationship banks, and extends our relationship with HSBC, a bookrunner on all our bond issues to date.

"This new Facility demonstrates the strong support we continue to receive from existing and new financing partners."

At 1253 BST, shares in Sirius Real Estate were up 0.05% at 96.45p.

Reporting by Josh White for Sharecast.com.

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