NPRO: REFINANCING OF BANK LOAN FACILITIES IN NORDEA AND SEB
Norwegian Property ASA has accepted an offer for refinancing of existing bank debt in Nordea and SEB. The offer includes a NOK 700 mill Term Loan with maturity end of March 2019, which coincides with the execution of the previously announced sale of the properties in Hovfaret 11 and Nedre Skøyen vei 24-26. The offer also includes a Revolving Credit Facility with an initial amount of NOK 400 mill, and with final maturity end of September 2020. Combined with the new NOK 1 400 mill bond loans announced this week Norwegian Property has implemented a refinancing securing longer duration and significantly reduced cost.
Pro forma as of 30th September the average interest of the company’s financing is reduced from 3.76% to 3.64% due to lower margins, while pro forma average time to maturity for the debt increases from 2.8 years to 3.6 years. The company has refinanced all loans with maturity in 2018.
Norwegian Property is a focused and fully integrated office property company with 32 properties located in the Oslo area and Stavanger in Norway. The portfolio, which has a total fair value of NOK 15.0 billion, is characterized by central location and attractive premises high quality tenants. The group’s properties consist largely of office premises, associated warehousing and car parking, as well as retail and catering space. The company has identified four value drivers for long-term value creation; Marketing & letting, Property management, Property development and Transactions & finance.
Norwegian Property is listed on Oslo Stock Exchange with the ticker NPRO.