Target Healthcare REIT Limited Extension of Debt Facilities (7576I)
September 02 2016 - 2:00AM
UK Regulatory
TIDMTHRL
RNS Number : 7576I
Target Healthcare REIT Limited
02 September 2016
Target Healthcare REIT Limited
Extension of Debt Facilities
The Board of Target Healthcare REIT Limited (the "Company" and
together with its subsidiaries, the "Group") is pleased to announce
that it has agreed with The Royal Bank of Scotland plc ("RBS") to
amend and restate the terms of its existing GBP30 million committed
term loan and GBP20 million revolving credit facility (together the
"Facilities").
The term of the Facilities has been extended from June 2019 to
August 2021. In addition, the amendment also provides an option of
two further one year extensions thereafter, subject to the consent
of RBS.
Interest is payable under the Facilities at a rate equal to
three month LIBOR plus a lending margin of 1.50 per cent. per
annum. This represents a reduction of 50 basis points on the
previous margin of 2 per cent. per annum. There are no other
material amendments to the Facilities.
As previously announced, the Group already benefits from an
interest rate swap agreement with RBS to fix its interest payments
on a notional GBP21 million of loans to June 2019 at a rate of 0.85
per cent. plus the lending margin. On the basis the Facilities are
fully drawn, this effectively fixes the interest payments on 42 per
cent. of the Company's available debt at a newly lowered fixed rate
of 2.35 per cent.
As at 31 August 2016 the Group's borrowings were GBP21 million,
giving a loan-to-value ratio of 9.4 per cent. (calculated as total
gross debt as a proportion of gross property value. As the Group
expects to invest the majority of its current cash balance in new
care homes, cash has been excluded from the calculation.).
The new Facilities will allow the Group to manage its capital
structure in line with its investment policy. Namely, that
borrowings over the medium term will represent approximately 20 per
cent. of the Group's gross assets at the time of draw down, whilst
the revolving credit facility will also provide shorter-term
flexible capital to fund the growth of the Group's property
portfolio.
In the event that the full amount is drawn down under the
Facilities the Group's gearing is expected to be approximately 17
per cent. of the Group's gross assets.
Enquiries:
Kenneth MacKenzie
Target Advisers
01786 845 912
Mark Young, Neil Winward, Tom Yeadon, Roger Clarke
Stifel Nicolaus Europe Limited
020 7710 7600
Martin Cassels
R&H Fund Services Limited
0131 550 3760
Fiona Harris/Sam Emery
Quill PR
020 7466 5058 / 020 7466 5056
Important information
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014). Upon the
publication of this announcement via Regulatory Information Service
this inside information is now considered to be in the public
domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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