THE UK's biggest listed landlord Grainger has signed loan agreements worth £900m to refinance its debts.
The Newcastle company saw its shares rise by more than 11% to 77p when the stock market shut yesterday in the highest growth it has seen in six months as investors took comfort that the business had the confidence of its banks.
Grainger had sealed a deal with five banks to provide £840m of loans that will mature in four instalments from December 2014.
The deal will replace existing loans and bring the total amount of debt agreed by the Group during the past eight months to around £1.2bn, which Grainger said gave it a “strong platform.”
Mark Greenwood, Grainger finance director, said: “These transactions give Grainger far greater certainty over its medium and long- term financing and are in line with our stated financing strategy.
“These two new facilities, along with those announced earlier in the year and our proven cash generating capabilities, demonstrate our continued ability to finance the group.”
