API Abrdn Property Income Trust Limited

 
TIDMSLI 
 
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 GBP145 million of its existing GBP 
155 million debt facility with The Royal Bank of Scotland plc ("RBS"). The 
debt  facility consists of a GBP110 million  7 year term loan facility (the "Term 
Loan") and a GBP35 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.  GBP145 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 GBP2,735,000, 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 
 
 
 
END 
 

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