Custodian REIT plc : Extension of Revolving Credit Facility (879523)

 
 Custodian REIT plc (CREI) 
Custodian REIT plc : Extension of Revolving Credit Facility 
 
26-Sep-2019 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
            26 September 2019 
 
      Custodian REIT plc 
 
      ("Custodian REIT" or "the Company") 
 
      Extension of Revolving Credit Facility 
 
  Custodian REIT (LSE: CREI), the UK property investment company, is pleased 
         to announce the extension of its revolving credit facility ("RCF"). 
 
    On 25 February 2014, the Company agreed a RCF of GBP25 million with Lloyds 
 Bank Commercial Banking ("Lloyds Bank") for a term of five years, and on 13 
  November 2015, the total funds available under the RCF were increased from 
GBP25 million to GBP35 million with the termination date extended to 13 November 
 2020. The RCF is secured by way of a first charge over a discrete portfolio 
    of properties, requiring a maximum loan to value ("LTV") ratio of 50% on 
 those properties specifically charged to it, and interest cover of at least 
  250%. Under the terms of the agreement the Company pays annual interest of 
     2.45% above three-month LIBOR on outstanding amounts drawn from time to 
            time. 
 
     On 17 September 2019 the Company and Lloyds Bank agreed to increase the 
   total funds available under the RCF from GBP35 million to GBP50 million for a 
     term of three years, with an option to extend the term by a further two 
    years subject to Lloyds Bank's agreement, and a reduction in the rate of 
          annual interest to between 1.5% and 1.8% above three-month LIBOR , 
            determined by reference to the prevailing LTV ratio. 
 
The RCF includes an 'accordion' option with the facility limit initially set 
     at GBP46 million, which can be increased to GBP50 million subject to Lloyds 
            Bank's agreement. 
 
    Commenting on the extension of the RCF, Richard Shepherd-Cross, Managing 
          Director of Custodian Capital Limited (the Company's discretionary 
            investment manager), said: 
 
 "Since IPO, the RCF has been crucial in providing flexibility to facilitate 
    the Company's growth while minimising cash drag from equity issuance and 
   opportunistic property disposals to maintain a fully covered dividend. We 
are delighted to have increased the RCF to GBP50 million and secured it for at 
  least three more years at a lower interest margin, which should reduce net 
           finance costs, provide additional capacity to exploit acquisition 
          opportunities and maintain the flexibility to minimise cash drag." 
 
       Richard Round, Relationship Director for Real Estate & Housing in the 
            Midlands at Lloyds Bank, said: 
 
"Custodian REIT has gone from strength to strength since its IPO in 2014 and 
   we are pleased to have supported it throughout its journey. From loans in 
  2015, the first long-term financing agreement through our partnership with 
            Scottish Widows, and 2016 to, most recently, extending its RCF. 
 
  "This deal will ensure Custodian REIT can expand its property portfolio to 
 drive further growth. We look forward to seeing the business prosper in the 
            coming years and supporting it every step of the way." 
 
      -Ends- 
 
For further information, please contact: 
 
          Custodian Capital Limited 
Richard Shepherd-Cross / Nathan         Tel: +44 (0)116 240 8740 
Imlach / Ian Mattioli MBE 
                                    www.custodiancapital.com [1] 
 
Numis Securities Limited 
Nathan Brown / Hugh Jonathan Tel: +44 (0)20 7260 1000 
                                    www.numiscorp.com 
 
Camarco 
Ed Gascoigne-Pees Tel: +44 (0)20 3757 4984 
                         www.camarco.co.uk 
 
            Notes to Editors 
 
    Custodian REIT plc is a UK real estate investment trust with a portfolio 
      comprising properties predominantly let to institutional grade tenants 
  throughout the UK, principally characterised by properties with individual 
             values of less than GBP10 million at acquisition. 
 
        The Company offers investors the opportunity to access a diversified 
      portfolio of UK commercial real estate through a closed-ended fund. By 
     principally targeting sub GBP10 million lot size regional properties, the 
 Company intends to provide investors with an attractive level of income and 
   the potential for capital growth, becoming the REIT of choice for private 
          and institutional investors seeking high and stable dividends from 
            well-diversified UK real estate. 
 
    Custodian Capital Limited is the discretionary investment manager of the 
            Company. 
 
            For more information visit www.custodianreit.com [2] and 
            www.custodiancapital.com [1]. 
 
ISIN:           GB00BJFLFT45 
Category Code:  MSCH 
TIDM:           CREI 
LEI Code:       2138001BOD1J5XK1CX76 
OAM Categories: 3.1. Additional regulated information required to be 
                disclosed under the laws of a Member State 
Sequence No.:   21259 
EQS News ID:    879523 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c24dec6d0ea6c746569ddd52de0eca8d&application_id=879523&site_id=vwd&application_name=news 
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=879523&site_id=vwd&application_name=news
(END) Dow Jones Newswires
September 26, 2019 02:00 ET (06:00 GMT)
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From Aug 2024 to Sep 2024