Empiric Student Property PLC Refinancing of £86.1 Million of Debt (0468L)
December 20 2018 - 2:00AM
UK Regulatory
TIDMESP
RNS Number : 0468L
Empiric Student Property PLC
20 December 2018
20 December 2018
Empiric Student Property plc
("Empiric" or the "Company" or, together with its subsidiaries,
the "Group")
REFINANCING OF GBP86.1 MILLION OF DEBT WITH NEW 10 YEAR LOAN
FACILITY WITH SCOTTISH WIDOWS
The Board of Empiric Student Property plc (ticker: ESP) (the
"Board"), the owner and operator of premium student accommodation
across the UK, is pleased to announce the successful refinancing of
GBP86.1 million of the Group's existing debt with a new 10 year,
fixed rate term loan facility with Scottish Widows Limited (the
"New Facility"). The New Facility is secured against a portfolio of
the Company's operating assets, held as a lending group, through a
wholly owned subsidiary.
The New Facility is interest only and fixed at 3.196% per annum
for 10 years. Upon drawdown of the New Facility, the Company's debt
servicing costs on the refinanced debt will be reduced and the
Company's average debt maturity profile across all facilities will
extend to eight years.
GBP30.6 million of the New Facility will be drawn in the near
term, with the remaining GBP55.5 million expected to be drawn
towards the end of October 2019. Both drawdowns will be at the
expiration of each term of the existing debt facilities so that the
Company does not incur any break fees. The Company's loan to value
remains unchanged and in line with the Company's long-term target
of 35.0%.
Lynne Fennah, Chief Financial and Operating Officer of Empiric
Student Property plc, commented:
"We are pleased to have agreed terms on our new long-term debt
facility with Scottish Widows at an attractive rate. The benefits
of our new GBP86.1 million facility include reducing the Company's
debt servicing costs on the refinanced debt and the extension of
the Company's average debt maturity profile across all
facilities."
Commenting on the facility, Duncan Smith, Director of Scottish
Widows Loan Investments said:
"As part of Scottish Widows' commitment to support all forms of
UK housing, we are pleased to provide Empiric with a long-term debt
facility, arranged through our partnership with Lloyds Bank Real
Estate and Housing. The funding is secured against premium student
accommodation in a range of key UK university cities and has been
structured to meet the client's specific refinancing
requirements."
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
Empiric Student Property plc (via Newgate below)
Tim Attlee (Chief Executive Officer)
Lynne Fennah (Chief Financial &
Operating Officer)
Jefferies International Limited Tel: 020 7029 8000
Gary Gould
Stuart Klein
Newgate (PR Adviser) Tel: 07747 113 930
James Benjamin Email: empiric@newgatecomms.com
The Company's LEI is 213800FPF38IBPRFPU87.
Further information on Empiric can be found on the Company's
website at www.empiric.co.uk.
Notes:
Empiric Student Property plc is a leading provider and operator
of modern, direct-let, nominated or leased student accommodation
across the UK. Investing in both operating and development assets,
Empiric is a multi-niche student property company focused on, (i)
providing good quality first year accommodation managed through its
Hello Student(R) operating platform in partnership with
universities, (ii) offering a variety of second and third year
purpose-built accommodation options for individual students and
those wanting a group living environment, and (iii) continuing to
expand the Group's existing premium, studio-led accommodation
portfolio which is attractive to international and postgraduate
students.
The Company, an internally managed real estate investment trust
("REIT") incorporated in England and Wales, listed on the premium
listing segment of the Official List of the Financial Conduct
Authority and was admitted to trading on the main market for listed
securities of the London Stock Exchange in June 2014.
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contact rns@lseg.com or visit www.rns.com.
END
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