CLS Holdings PLC Completion of GBP61.7m long-term, sustainable loan (7856W)
April 28 2021 - 2:00AM
UK Regulatory
TIDMCLI
RNS Number : 7856W
CLS Holdings PLC
28 April 2021
Release date: 28 April 2021
Embargoed until: 07:00 am
CLS Holdings plc ("CLS")
announces the completion of a GBP61.7 million long-term,
sustainable real estate loan with Scottish Widows
CLS announces that it has completed a GBP61.7 million loan with
Scottish Widows secured on a portfolio of five UK office
properties. This loan replaces two existing loans of GBP27.4
million, which were due to expire before the end of 2021, as well
as financing three recent unencumbered acquisitions. Overall, the
transaction will result in net additional cash to CLS of GBP33.7
million, after costs.
The twelve-year loan has a loan-to-value ratio of 55% and a
fixed interest rate of 2.65%. Subject to certain conditions, CLS
will be able to remove or substitute properties as security for the
loan.
The loan, which is in line with the LMA sustainability-linked
loan principles, incorporates a 10-basis point margin reduction
dependent on the delivery of specific sustainability targets. The
loan will increase the proportion of CLS' total loans which are
green/sustainability-linked to around 20%.
Andrew Kirkman, Chief Financial Officer of CLS, commented:
"We have had a strong relationship with Lloyds Banking Group, of
which Scottish Widows is a part, for many years. This long-term
financing recognises and incentivises our sustainability
commitments while aligning them to those of Scottish Widows.
Furthermore, this loan diversifies our debt profile and the amount
meeting green financing principles."
Duncan Smith, Director of Loan Investments at Scottish Widows,
commented:
" We have worked closely with CLS to put in place this long-term
funding package to support its continued growth strategy. This
marks the first sustainability-linked Scottish Widows loan and
follows our recent announcement to halve our carbon footprint of
investments by 2030 and target net zero emissions by 2050."
Following the execution of this loan and the financings
associated with the recent completion of our five German
acquisitions as well as payment of the final dividend on 29 April
2021, CLS will have cash of over GBP150 million and a loan to value
ratio of c.39% based on 31 December 2020 portfolio valuation (31
December 2020: 33.7%) with a further GBP50 million in undrawn
facilities.
-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
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END
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