Goodman has completed the £1.2bn refinancing of its Arlington Business Parks Partnership fund.
The move comes at a time when it is increasingly difficult for companies to secure large debt facilities due to increasing turmoil in the credit markets.
The new credit facility has two parts; an £800m of commercial mortgage backed securities bought by a conglomerate of institutional investors, and a £400m revolving credit facility provided by Royal Bank of Scotland and Eurohypo.
The debt is secured against a portion of the fund’s £1.9bn business park portfolio.
Calyon and RBS were joint lead managers and book runners on the CMBS issue. Eurohypo and RBS were joint arrangers.
Goodman said that the refinancing was undertaken to rationalise its debt facility after its purchase of business park specialist Akeler in November 2006, as well as provide the opportunity for future growth.
Jeff Pulsford, Goodman’s European CEO, said: “We are delighted to have closed the securitisation on time, especially given the current difficult credit conditions in the market. The new structure will give a fillip to our investors, who will benefit from the stability and growth potential that this provides the fund.”
