BBGI Secures New £ 230 Million Revolving Credit Facility
Infrastructure investment company BBGI Global Infrastructure has secured a new committed £ 230million multi-currency revolving credit facility, she said on Tuesday, from ING Bank, DZ Bank, KfW IPEX-Bank and SMBC Bank.
FTSE 250 has said the facility will replace the current £ 180million facility with ING, DZ and KfW, which started in January 2018 and expires in January 2022.
He said the new facility would have a term of five years, starting in May, with a borrowing margin of 165 basis points above the relevant benchmark rate.
Under the new revolving credit facility, BBGI said it would have increased flexibility to consider larger transactions due to the structure of an additional £ 70million uncommitted accordion tranche, for which no commitment fee would be paid.
The multi-currency facility would be used primarily to finance acquisitions and provide letters of credit for investment obligations, and the intention would be to repay the facility from time to time through fundraising.
“The new revolving credit facility helps ensure that BBGI has the ability to complete large portfolio transactions or acquisitions from multiple vendors as quickly as possible as they become available,” said Co-Managing Director Frank Schramm.
“We continue to be excited about the growth opportunities available to BBGI over the coming years and this new facility will support the continued development of the business. “
Co-CEO Duncan Ball added that increasing the term of the new facility to five years instead of four, and the expansion of the lending group, underscored the “supporting force” for BBGI and its strategy of future growth, as well as the “strong fundamentals” of its focus on low-risk, availability-based infrastructure investments.
“We also helped cut costs by structuring an additional £ 70million accordion tranche for which no commitment fee is payable.
“The multi-currency facility and the accordion facility allow BBGI to borrow in the currency of the underlying assets or in sterling.”
At 0811 BST, shares of BBGI Global Infrastructure rose 0.57% to 176p.