To:
RNS
From: Standard Life Investments Property
Income Trust Limited
Date:
28 April 2016
STANDARD LIFE INVESTMENTS PROPERTY
INCOME TRUST LIMITED
Debt Refinancing
Standard Life Investments Property Income Trust Limited (the
"Company") announces that Standard Life Investments Property
Holdings Limited (the "Property Subsidiary"), a wholly owned
subsidiary of the Company, and various subsidiaries of Standard
Life Investments Property Holdings Limited (the "Group") has
entered into an agreement to extend £145 million of its existing
£155 million debt facility with The Royal Bank of Scotland plc ("RBS"). The debt facility
consists of a £110 million 7 year term loan facility (the
"Term Loan") and a £35 million 5 year revolving credit facility
(the "Revolving Credit Facility"). The Revolving Credit Facility
may by agreement be extended by one year on two occasions.
£145 million has been drawn down by the Group and its loan to
value currently stands at approximately 29.5 per cent. which is in
line with the Board's stated target level of between 25 per cent.
and 35 per cent. loan to value. The interest cover for the Group is
now approximately 780% per cent.
Interest is payable on the Term Loan at LIBOR plus 1.375% and on
the Revolving Credit Facility at LIBOR plus 1.2%. This equates to a
rate of 2.725% on the Term Loan (including an interest rate swap
entered into between the Property Subsidiary and The Royal Bank of
Scotland plc) and 1.78% on the
Revolving Credit Facility (based on LIBOR of 0.58% as at
27 April 2016) which together give an
attractive current blended rate of 2.5% (based on the Revolving
Credit Facility being fully drawn)
The loan is secured over the Group's existing property portfolio
including new security over the majority of the 22 properties
acquired in December 2015.
The restated facility agreement includes terms that are typical
for a facility of this nature, including loan to value (a maximum
of 60% for the first five years and 55% thereafter) and interest
cover ratio covenants (not less than 175% for the term of the
facility) and the ability to substitute properties in the security
pool.
The Revolving Credit Facility is to be available for general
purposes and may be utilised to fund the acquisition of new assets
by the Group. The Revolving Credit Facility will allow aggregate
debt to be increased or decreased depending on the Investment
Manager's view of the property market and ongoing cash levels
within the Group. It will also provide the Investment Manager
with additional finance that can be utilised in a quick and
efficient manner should acquisition or asset management
opportunities arise.
The Group has also terminated its existing interest rate hedging
arrangements entered into in connection with the its previous
facility arrangements and terminated and replaced its existing
interest rate hedging arrangements with RBS. The cost of
terminating these hedge positions was £2,735,000, all of which was
fully reflected in the 31 December
2015 NAV.
For further information please contact:
Jason Baggaley Standard Life Investments
Tel: 0131 245 2833