Struggling shopping centre owner, Intu, has revealed it has secured an extension to its credit facility with its lenders, on the condition that it can raise £1.3billion of equity.
Intu has agreed terms for an amendment and extension of its revolving credit facility until 2024. The revised four-year, £440 million RCF is conditional on intu raising a minimum of £1.3 billion of equity and will replace intu’s existing £600 million RCF which is due to expire in October 2021.
The revised RCF will be provided by all seven of the existing banks who participate in intu’s current RCF: Bank of America, Barclays, Credit Suisse, HSBC, Lloyds, Natwest and UBS.
Matthew Roberts, Chief Executive of intu, commented: “This extension of our RCF is a key milestone in addressing our near-term refinancing needs. It also underlines the continued support we have from our relationship banks. This revised RCF 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.”
TheIndustry.fashion reported in January 2020 that Intu has will be tapping up shareholders for extra cash to pay down its debts.
Earlier this month shares plunged by nearly a third after it said Hong Kong-based retail property investor Link Real Estate Investment Trust had pulled out of cash-call talks, just a day after confirming discussions between the pair.