Pro-active re-financing reduces gearing and positions MEPC for future activity.
MEPC, the developer and owner of eight Business Estates across the UK, announced today that it will prepay £74.5m of the £470m loan securitised via Opera Finance (MEPC) plc, on the next interest payment date on 20 April 2011, in advance of maturity in July 2012. This follows the first stage prepayment of £102.5m in January 2011. The CMBS, completed in November 2005 and arranged by Eurohypo AG, was secured against four of MEPC’s Business Estates - Milton Park in Oxfordshire, Birchwood Park in Warrington, Chineham Park in Basingstoke and Hillington Park in Glasgow.
This prepayment, which follows the Birchwood refinancing in January, is the second stage of a wider financing strategy to address the early repayment of the securitised loan before its maturity in July 2012.
As a consequence of this prepayment, Hillington Park will be released from the securitisation. MEPC will use a combination of cash from recent disposals and equity, alongside a new five year facility of £53.6m from Eurohypo.
As a result of the prepayment, the CMBS loan outstanding reduces to £293m, secured against Milton Park and Chineham Park and the interest cover on the remaining debt will increase to 230%.
Rick de Blaby, Chief Executive of MEPC, said ‘This early repayment of part of MEPC’s CMBS Notes marks a second stage in our programme to address the refinancing of our portfolio ahead of maturity after the successful repayment of £102.5m in January. The new loan, again with Eurohypo, whose long term relationship we hugely value, reduces gearing and brings in further diversity to our overall debt position. It also underlines MEPC’s prudent debt strategy, the robustness of its income from quality assets and our overall desire to be positioned well for a new phase of activity and performance.’
Michael Acratopulo, Head of Origination at Eurohypo commented, ‘Following on from the success of the Birchwood Park refinancing we are pleased to have once again assisted MEPC in their funding strategy by providing a further facility for Hillington Park. We are delighted to be broadening our relationship with MEPC.’
Caroline Philips, Head of Structured Debt at Eurohypo observed, ‘MEPC’s continued pro-active management of their debt marks another important step in the refinancing of the Opera MEPC CMBS issue.’
