London landlord has no major debts due before 2028 after securing £2bn of headroom in transactions this year
US private capital group Apollo will lend Canary Wharf £610mn to pay off its bonds, in a deal that allows the London landlord to complete its refinancing race but will lock it into higher interest costs. The US group will provide a five-year loan in two tranches to refinance two of Canary Wharf Group’s bonds when they fall due in 2025 and 2026, secured against the east London financial centre’s underground shopping centres.
Such loans would typically be priced several percentage points above the Bank of England’s Sonia benchmark Sterling borrowing rate, which is currently about 4.7 per cent. Rating agencies Fitch and Moody’s have both noted the high proportion of earnings CWG is already spending on interest payments. “Rising funding costs . . . will strain the company’s already low interest cover,” Moody’s analyst Ramzi Kattan said last week.
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