Slaughter and May advised McKay Securities - recent refinancing and simultaneous execution of three secured facilities

Slaughter and May advised McKay Securities Plc (McKay) on its recent refinancing and simultaneous execution of three secured facilities.

The refinancing increased the scale of McKay's loan portfolio from £155 million to £175 million with Aviva Commercial Finance Limited introduced as a new lender and existing lending relationships maintained with three of McKay's existing lending banks. The refinancing provides an extended maturity profile and secures McKay's borrowings ahead of loan expiries due to commence in 2016.

The new facility from Aviva is a £55 million term loan with a fifteen year term fixed at 4.13%. This replaces a facility of £47 million due to expire in February 2016. Facilities with other existing lending banks were increased by £12 million to £120 million, of which new facilities account for £85 million on five year terms.

As part of the refinancing, Slaughter and May also advised McKay on the reduction of its interest rate swaps by £35 million to £45 million.