Allen & Overy has advised the joint lead managers (Goldman Sachs and Barclays) on Tesco Plc’s sixth credit tenant linked (CTL) CMBS financing, launched by Tesco Property Finance 6 Plc. The financing raised debt in excess of GBP490 million.
For the sixth time Tesco accessed the public debt markets to release value from its UK property portfolio. Allen & Overy has advised the arrangers on all six transactions.
The deal involves seven stores, four of which are already trading. The remaining three are under construction. The bonds are rated (by Moody’s, Fitch and Standard and Poor’s) at the same ratings levels given to Tesco Plc’s senior unsecured debt.
Structured finance partner Christian Lambie commented: “The nature of the development properties in the portfolio posed interesting challenges for a rated CTL transaction.”
Partner Christian Lambie led the team assisted by senior associates David O’Connor, David Barker and James Burton and associates Iona Misheva and Emma Willoughby. Associate Steve Quinn provided tax advice. A&O’s Luke Lewis advised the trustee (HSBC) and Berwin Leighton Paisner advised Tesco.
