LondonMetric refinances €1.75b in debt

LondonMetric has successfully refinanced £1.5 bn (€1.75 bn) of its unsecured term loans and revolving credit facilities (RCFs), significantly enhancing its debt structure and financial flexibility.

Londonmetric logistics

The refinancing involves two new facilities, a £1.3 bn (€1.52 bn) syndicated facility and a £200 mln (€233 mln) bilateral facility, which replace nearly all existing unsecured debt due to mature over the next four years. This strategic move is expected to yield an annual cash saving of approximately £6 mln (€7 mln).

Key benefits of the refinancing include a reduction in the average margin and commitment fees, a diversified lender base, and reduced refinancing risk (until fiscal year 2029).

Following this refinancing, only £186 mln (€217 mln) of debt is set to expire over the next two years, which LondonMetric plans to cover through asset sales and/or its substantial £0.5 bn (€0.58 bn) of undrawn debt facilities.

Barclays Bank and National Westminster Bank served as joint co-ordinators and bookrunners for the £1.3 bn (€1.52 bn) syndicated facility.

Martin McGann, CFO of LondonMetric, commented: “This refinancing significantly enhances our capital structure, reduces our cost of debt and further strengthens our diverse lender relationships. The structure supports our wider funding strategy as we look ahead to further potential debt capital markets issuance, continued disciplined growth and managing our finance costs to ensure they don’t increase materially over the next few years.”