New Debt Facility (9899V)
January 23 2012 - 5:50AM
UK Regulatory
TIDMSLI
RNS Number : 9899V
Standard Life Invs Property Inc Tst
23 January 2012
To: Company Announcements
Date: 23 January 2012
Company: Standard Life Investment Property Income Trust Limited
New debt facility
Standard Life Investments Property Income Trust is pleased to
announce it has completed its new debt facility.
The new facility gives the Company certainty over its capital
structure, and will enable it to continue to focus on active
management of the Company's assets.
In December 2011 the Company signed a new Debt facility with RBS
to replace its existing facility of GBP84.4m which was due to
expire in December 2013. The Company has now drawn down in full the
new facility and entered into new interest rates hedges to give a
cost of debt of 6.38% until December 2013, reducing to 3.76% from
Jan 2014 to expiry of the facility in December 2018. The all in
cost prior to the new facility was 6%. The Company retained its
existing hedge of GBP72m due to expire in Dec 2013 as it had a
liability of GBP6.1m (4.5p per share) as at 30 December 2011. That
hedge will unwind (though not on a straight line basis) by Dec 2013
to a value of GBP0. For the avoidance of doubt, the new facility
will be used to repay the old debt facility, with no change to the
Company's level of borrowings.
The new facility has an LTV covenant of 65% for the first 5
years (same as old covenant), and 60% for the final 2 years. The
old ICR covenant of 170% has been reduced to 150% of net rental
income.
Jason Baggaley, Fund Manager of the Standard Life Investments
Property Income Trust said "we are extremely pleased to have
secured the new debt facility well in advance of the expiry date as
it gives us certainty over the next 7 years, and will enable us to
continue with our active approach to managing the portfolio. The
terms of the new facility mean that the cost of debt is slightly
higher over the next two years until the old hedge matures, but
from January 2014 onwards our interest costs will be approximately
GBP1m pa less than they have been to date, giving scope for future
dividend growth. Over the next two years we hope to maintain a
covered dividend as a result of our successful lease regears and
tenant retention, but the actual level of cover will depend on the
timing of investment of our GBP15m cash. I think 2012 is an
exciting time to have some money to invest, and am exceptionally
pleased to have secured this new facility at a time many lenders
are withdrawing from the UK market. In June 2011 we converted our
zero preference shares which were due to mature in 2013 into
ordinary shares, so we have now have a simplified capital structure
with a secure long term debt facility.
All enquiries:
Jason Baggaley, Standard Life Investments (Corporate Funds)
Limited
Tel: 0131 245 2833
Gordon Humphries, Standard Life Investments (Corporate Funds)
Limited
Tel: 0131 245 2735
This information is provided by RNS
The company news service from the London Stock Exchange
END
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