National Storage increase Debt6 April 2020
If an effort to ensure its planned development and acquisition pipeline is able to proceed, National Storage REIT has secured additional debt facilities of up to $225m.
The new debt includes a $125 million increase in facilities from its existing club banks, the extension of a NZ$50 million facility due to expire in 2020 and a new commitment from JP Morgan for $100m on common terms to the existing banks.
Managing Director Andrew Catsoulis said, “The support shown by our financiers has been, and continues to be, an important part of NSR’s success. We are excited to welcome J.P. Morgan into our club banking arrangements and appreciative of their ongoing support. These new arrangements have substantially increased NSR’s liquidity position, ensuring it is well placed to execute its business plan in the future.”
Together, these new debt arrangements increase NSR’s total debt facilities to A$1,175 million and undrawn debt capacity to $314 million. NSR remains well within all of its debt covenant limits of a 55% LVR and 2x ICR. The group stated that its gearing is within its target gearing range of 25-40%. However, if fully drawn, the $1175m of debt would equate to 48% of its total assets and place the group at risk of breaching its LVR if valuations fall.