Taylor Wessing advises both Deutsche Postbank and HSH Nordbank on long awaited Minerva debt refinancing
Following months of speculation around the future of property developer Minerva Plc, two teams from Taylor Wessing's finance group have simultaneously advised Deutsche Postbank and HSH Nordbank on the successful restructuring of £570m of the developer's debt.
Minerva has been one of the most badly affected developers by the credit crunch, with total debt facilities of over £1bn. Revised commercial terms have been reached for the loan facilities financing Minerva's two largest on-going developments - The Walbrook and St Botolphs. Following the announcement Minerva's beleaguered share price soared by over 20%.
The revised commercial terms include, inter alia, the deferral of loan to value covenants, the removal of interest guarantees and related covenants (including net worth covenants), and the availability of additional tranches within the respective facilities to finance post-completion interest. In return, Minerva has provided additional security, incorporated certain leasing targets and agreed to provide the lenders with an enhanced exit fee.
Finance partner Martin Yells, who led the team acting for Deutsche Postbank, successfully negotiated the £275m restructure of The Walbrook development loan facility. The Walbrook, a retail and office development of over 445,000 sq ft, is scheduled to be completed in December 2009. The team included finance associate Nicholas Kilbey and was assisted by trainee Daniel Perkins. In addition to the Walbrook restructuring, Taylor Wessing also advised Deutsche Postbank on recent amendments and extensions made to four other Minerva financings.
Led by finance partner Rodney Dukes, the team acting for HSH Nordbank advised on the restructuring of the St Botolph's development loan facility, which now totals £295m – a reduction from £315m. Associates Greer Campbell and Edward Manser played key roles.
Speaking about the successful restructuring, Martin Yells says:
"Taylor Wessing has acted for the lenders on several of Minerva's investments and developments over a number of years. We are once again delighted to have acted for Deutsche Postbank and HSH Nordbank on the recent restructurings and facility extensions, which should provide Minerva with a sound platform to successfully realise two of the largest on-going office developments in the City."
Olswang advised Minerva Plc.
Lawyers Martin Yells, Rodney Dukes, Greer Campbell, Edward Manser, Daniel Perkins
Notes to editors
For more information please contact Sarah le Cheminant at Taylor Wessing:
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Email: s.lecheminant@taylorwessing.com
Taylor Wessing LLP is a leading law firm providing legal support for commercial organisations doing business in Europe, the Middle East and China. Taylor Wessing boasts a strong reputation in the corporate, finance and real estate sectors alongside in-depth experience across the full range of legal services, including finance, intellectual property and technology, tax, litigation & dispute resolution, employment & pensions and private client.
The Walbrook is a Foster and Partners designed new office headquarters building, which is located opposite Cannon Street station. The scheme comprises of 445,000 sq ft of office and retail accommodation and is scheduled to be completed in December 2009.
St Botolph's is a headquarters office building standing on an island site of 1.25 acres on the eastern side of The City of London. The scheme, designed by internationally renowned architects, Grimshaw is for a 14 storey landmark office building with circa 560,000 sq ft accommodation, including retail space. The development is scheduled to be completed in the Summer 2010.
