Grainger Announces Additonal Debt Facility

Grainger plc, is pleased to announce that it has created significant additional liquidity in its core UK debt portfolio by raising a further £228 million five-year revolving credit facility. The average maturity of the Group’s main facility has now increased to approximately four years and across the whole Group the average maturity of our debt is five years. The first refinance of part of the main facility is due in June 2010.

This new facility will increase Grainger’s headroom to approximately £412 million including cash of £73 million and the average lending margin on its core UK debt will increase by just four basis points to 77 basis points. This positions Grainger well to act upon acquisition opportunities as they arise, thereby enhancing its ability to create shareholder value.

At 31 January 2008, the loan to value ratio on the Company’s core facility amounted to 57.9%, compared to a bank covenant limit of 80%, although the banking documentation provides for property acquisitions to be reduced should the loan to value ratio exceed 70%.

Andrew Cunningham, Grainger’s Deputy Chief Executive and Finance Director commented:

“Liquidity, the availability of finance and securing debt of longer maturities are vital factors for real estate companies in the current credit environment. We are very encouraged that our relationship banks continue to support us in such a positive way, demonstrating third party confidence in the robustness of our business model. It is particularly pleasing that we have introduced two new participants, Bank of Ireland and Handelsbanken, to the core group of lenders and we look forward to working with them in the future.

As we mentioned in our recent Interim Management Statement, whilst we continue to seek and identify opportunities, we do so with caution and will continue to only act upon those that are well priced and where we can add value. This new facility gives us flexibility that we believe will prove very valuable in the medium term.”


For further information:
Grainger plc
Andrew Cunningham
Keith Sadler
Tel: +44 (0) 191 261 1819

Financial Dynamics
Stephanie Highett
Dido Laurimore
Jamie Robertson
Tel: +44 (0) 191 261 1819
Tel: +44 (0) 20 7831 3113