South-east and London-focused real estate investment trust McKay Securities (MCKS) has refinanced its debt facilities, which will cut the overall cost of debt from 6.6 per cent to 4.62 per cent, and has extended the overall maturity date from 1.6 years to 9.1 years. No debt is now due for repayment until December 2017 at the earliest.
IC TIP:
Buy
at
241p
Specifically, the loan portfolio has been increased by £20m to £175m, and includes a new loan from Aviva Commercial Finance for £55m over 15 years fixed at 4.13 per cent. At the same time, McKay has reduced its interest rate swaps by £35m to £45m at a cost of £13.1m.
