£170 Million Debt Refinancing Update

Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust providing secure, inflation-linked, long income from grocery property, announces the completion of a £170 million[1] refinancing through its first private placement debt issuance and a new unsecured bank facility.

€83 million private placement debt issue

The Company has signed and completed an agreement with a group of institutional investors for a private placement of €83 million of new senior unsecured notes (the "Notes"). The Notes have a maturity of seven years and a fixed rate coupon of 4.44%.

The Notes were priced on 11 July 2024 and the note purchase agreement was signed on 25 July 2024. Proceeds were received on 25 July and will be used to refinance euro drawings under an existing secured revolving credit facility with HSBC, which had been used to fund the recent acquisition of a portfolio of 17 stores from Carrefour.

£100 million debt refinancing

The Company has also refinanced its existing £97 million secured debt facility with Deka through a new £100 million unsecured debt facility with ING Bank N.V., London Branch ("ING").

The new ING facility (the "Facility") comprises a £75 million term loan and a £25 million revolving credit facility. The interest-only Facility has a maturity of three years and has two one-year extension options at the lender's discretion. The Facility is priced at a margin of 1.55% over SONIA and benefits from forward starting hedges, which cap the interest rate at an all-in cost of 3.0% until January 2026.

Following the debt refinancing, the Company has a pro-forma LTV of 37%.

Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT, said:

"We are very pleased at the support we have received from new institutional investors both for the Company's new unsecured private placement and for the refinancing of the secured facility.

The quality of our portfolio continues to appeal to new lenders and allows the Company to access debt financing on favourable terms."

[1] Including €83 million Private Placement converted at €1.19 to £1