intu signs new credit facility as £1.3bn equity deadline looms

intu owns the Merry Hill mall

intu, the owner of the Merry Hill shopping centre, has signed a new £440m credit facility.

The deal, which will see a syndicate of seven banks work with intu, replaces an existing £600m revolving credit facility (RCF) that is due to expire in October 2021 – but is dependent on intu raising a minimum of £1.3bn of equity.

intu says it is working with its corporate brokers, BofA Securities and UBS, and its financial adviser, Rothschild & Co, on the equity raise. It says it will provide an update when it releases its annual results for the year ended 31 December 2019, on 5 March.

Matthew Roberts, chief executive of intu, said: “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.”