// Intu secures extension on credit facility with its lenders
// 7 of its existing banks will provide the £440m revolving credit facility
Intu has agreed to an extension on its credit facility with its lenders on the condition that it can raise a total of £1.3 billion equity.
The shopping centre owner’s new £440 million revolving credit facility will be provided by all seven of its existing banks.
It is due to replace its £660 million facility which expires in October 2021.
- Intu plans to boost new CEO bonus by 250% despite falling share price
- Intu forms performance team to speed up transformation
- Intu shares plunge after major investor quits fundraising talks
Its seven banks comprise of Bank of America, Barclays, Credit Suisse, HSBC, Lloyds, Natwest and UBS.
The news comes after Intu saw Hong Kong-based investment firm Link Real Estate pull out of a £1 billion deal earlier this month.
Shares in the shopping centre owner fell by 27.1 per cent after Link pulled out, a day after confirming discussions.
Intu said at the time it “remains engaged” with shareholders and potential new investors over a possible equity raise.
Currently, Intu is working with its corporate brokers BofA Securities and UBS and financial adviser Rothschild on the equity raise and intends to update the market before it unveils its latest set of results, for the 2019 financial year, on March 5.
“This extension of our revolving credit facility is a key milestone in addressing our near-term refinancing needs. It also underlines the continued support we have from our relationship banks,” Intu chief executive Matthew Roberts said.
“This revised revolving credit facility will extend the maturity profile and be used to provide general liquidity for Intu.
“Fixing the balance sheet remains our number one priority and we remain engaged with shareholders and potential new investors in relation to the intended equity raise.”