Standard Life Investment Property Income Trust (SLI.LN), said Wednesday it is entering into revised banking arrangements with its lender, RBS, that will provide the company with greater flexibility to invest its existing cash resources.

MAIN FACTS:

-This will allow the company to take advantage of opportunities to purchase attractively priced commercial properties over the coming months.

-Once the cash has been invested the company's dividend cover should be enhanced further from its current strong level.

-The new arrangements have been agreed in principle and are currently being documented.

-RBS has agreed that the loan to value ratio can be increased to 65% from its current maximum level of 55% and that the covenant calculation will be amended to provide for a full cash offset against borrowings.

-The LTV covenant will be a maximum of 65% calculated as borrowings less cash divided by the value of properties. Property values could fall by 34% from end March 2009 levels before an LTV breach will occur.

-The company has agreed to increase the margin on the debt from 60 billion ps to 150 billion ps, along with a 50 billion ps arrangement fee. As a result of these changes the Company's all in cost of debt will be 6%.

 
-By London Bureau, Dow Jones Newswires; +44 (0)20 7842 9296; ian.walker@dowjones.com
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