22 June
2016
PICTON PROPERTY
INCOME LIMITED
(“Picton”, the “Company” or the “Group”)
New £27 million
revolving credit facility
Picton, the property investment company, has entered into a five
year £27 million revolving credit facility ("RCF") with Santander
Corporate & Commercial Banking.
The RCF, which is similar to the facility set up in March 2015, will provide the Group with greater
operational flexibility. In addition to existing undrawn
facilities, it can be used to meet the repayment of the 7.25%
Zero Dividend Preference Shares ("ZDPs") that mature in
October 2016, as well as providing
the additional firepower to make opportunistic acquisitions.
The terms of the facility allow for it to be repaid and redrawn
over the life of the loan as required. This will enable Picton to
better manage its gearing position and if appropriate provides the
flexibility to reduce gearing using proceeds from any future asset
disposals.
Secured across four assets, the RCF has a nominal
non-utilisation fee of 70 basis points, equivalent to £0.19 million
per annum. Once drawn, it will incur an interest charge currently
equivalent to 2.3% per annum, reflecting 175 basis points over 3
month LIBOR.
If the facility is used to repay the ZDPs in October, it will
significantly reduce the Group’s overall annual cost of debt by
£1.3 million, resulting in a 7% increase in dividend cover per
annum on a pro forma basis.
As at today's date, in total the Group has access to £37.2
million of undrawn facilities.
Picton Chairman, Nicholas
Thompson, commented: "This transaction will enable
Picton to simplify its corporate structure in October through the
repayment of ZDPs, extending the Group’s debt maturity profile and
reducing the overall cost of debt."
Andrew Dewhirst, Finance
Director, Picton Capital
added: "We have secured a flexible 5 year facility that
complements our existing debt structure. It also ensures we
can maintain an efficient balance sheet that we can adjust
according to market conditions."
ENDS
For further information:
Tavistock
Jeremy Carey/James Verstringhe, 020 7920 3150,
jverstringhe@tavistock.co.uk
Picton Capital Limited
Michael Morris, 020 7011 9980,
michael.morris@picton.co.uk
Note to Editors
Picton is an income focused property investment company listed on
the London Stock Exchange. Picton can invest both directly and
indirectly in commercial property across the United Kingdom.
With Net Assets of £417.1 million at 31
March 2016, the Company´s objective is to provide
shareholders with an attractive level of income, together with the
potential for capital growth by investing in the principal
commercial property sectors. www.picton.co.uk