Quintain Estates & Development Plc (QED)’s iQ Fund, a student accommodation provider, completed 158 million pounds ($253 million) of debt refinancing with M&G Investments and Deutsche Postbank AG. (DPB)
M&G, a unit of Prudential Plc (PRU), provided a 115 million-pound five-year senior loan at an interest rate of 290 basis points more than the London interbank offered rate, London-based Quintain said in a statement today. The transaction is secured on nine of the fund’s 12 buildings.
iQ Fund also got a 42.75 million-pound five-year loan from Deutsche Postbank that pays an interest margin of 275 to 300 basis points and is secured by the fund’s remaining assets, Quintain said. A basis point is 0.01 percentage point.
The deals will replace iQ Fund’s five-year senior borrowing with HBOS Plc and Fortis that mature this year, according to the statement.
iQ Fund is owned by Quintain, an urban regeneration specialist, and U.K. charity Wellcome Trust Ltd. Each holds 50 percent of the fund.
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