The ISIS Property Trust today announced it had dropped Royal Bank of Scotland as its primary bank as part of a major review of the company’s existing borrowings.
The switch, which was made to help reduce the trust’s interests costs on long-term debt, gives ISIS access to debt priced 50 basis points over LIBOR for the first three years of the 10-year agreement and 45 basis points over LIBOR for the remaining period. The company has initially drawn down £40m under the new facility.
ISIS has used the amount drawn down under the new facility to help repay some its old borrowings from RBS. Following this drawdown, the company borrowings represent approximately 23% of its gross assets.