CLS Holdings PLC Completion of a GBP154 million long-term, green loan (4974A)
September 30 2020 - 2:00AM
UK Regulatory
TIDMCLI
RNS Number : 4974A
CLS Holdings PLC
30 September 2020
Release date: 30 September 2020
Embargoed until: 07:00 am
CLS Holdings plc ("CLS")
announces the completion of a GBP154 million long-term, green
loan with Aviva Investors
CLS announces that it has completed a GBP154 million loan with
Aviva Investors which is secured on a portfolio of 12 UK
properties. This loan replaces three existing loans of GBP67
million, which were due to expire in 2020 and 2021, as well as
gearing unencumbered properties and will result in net additional
cash to CLS of GBP86 million, after costs. Subject to certain
conditions, CLS will be able to remove or substitute properties as
security for the loan.
Over 60% of the properties by value are offices including 166
College Road, Harrow and Twenty Kingston Road, Staines, which were
acquired earlier this year, as well as the office, hotel and
student accommodation at our mixed-use Spring Mews property in
Vauxhall. The offices have a WAULT of 5.2 years.
The GBP154 million loan, which has a loan to value of 55%, is in
two tranches split equally between 10-year and 12-year tranches.
The average interest rate is 2.62% fixed.
The loan has been independently assured as a "green loan" in
line with LMA sustainability principles with up to a 10-basis point
margin reduction dependent on the delivery of specific
sustainability targets. As noted, cash and gross debt will increase
by GBP86 million with net debt and gearing remaining unchanged at
c.35%. Weighted average debt maturity will increase from 3.1 years
as at 30 June 2020 to 4.5 years on a pro forma basis. The
additional funds will increase CLS' cash reserves and allow for the
evaluation of further acquisition opportunities.
Andrew Kirkman, Chief Financial Officer of CLS, commented:
"We are pleased to have secured this GBP154m loan with such a
well-established real estate funder as Aviva Investors. This loan
increases our weighted average loan maturity by nearly 50% to 4.5
years. Moreover, we are delighted that the loan recognises our
sustainability progress and incentivises our future target delivery
while aligning our sustainability commitment to that of Aviva
Investors."
Gregor Bamert, Head of Real Estate Debt at Aviva Investors,
commented:
" We are delighted to support CLS and the strong emphasis it
places on the provision of a sustainable portfolio. This
transaction builds on our experience of incentivising borrowers to
bring the green credentials of their portfolios into sharper focus
and we are pleased to have received independent assurance that the
facility is aligned with LMA sustainability linked loan principals.
The wide range of investment capital used within the facility
further underlines our ability to tailor debt solutions for
borrowers whilst delivering strong opportunities for our investor
clients. "
-ends-
For further information, please contact:
CLS Holdings plc
(LEI: 213800A357TKB2TD9U78)
www.clsholdings.com
Fredrik Widlund, Chief Executive Officer
Andrew Kirkman, Chief Financial Officer
+44 (0)20 7582 7766
Liberum Capital Limited
Richard Crawley
Jamie Richards
+44 (0)20 3100 2222
Panmure Gordon
Hugh Rich
+44 (0)20 7886 2733
Elm Square Advisers Limited
Jonathan Gray
+44 (0)20 7823 3695
Smithfield Consultants (Financial PR)
Alex Simmons
Rob Yates
+44 (0)20 3047 2546
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDBLGDCIXDDGGC
(END) Dow Jones Newswires
September 30, 2020 02:00 ET (06:00 GMT)
Cls (LSE:CLI)
Historical Stock Chart
From May 2024 to Jun 2024
Cls (LSE:CLI)
Historical Stock Chart
From Jun 2023 to Jun 2024