Proposed Restructuring of Bank Facility (5253D)
March 24 2011 - 3:01AM
UK Regulatory
TIDMIPI
RNS Number : 5253D
Invesco Property Income Trust Ltd
24 March 2011
24 March 2011
INVESCO PROPERTY INCOME TRUST LIMITED
PROPOSED RESTRUCTURING OF bank FACILITY
The Directors of Invesco Property Income Trust Limited ("IPIT"
or the "Company") are pleased to announce that they have reached
agreement in principle with the Company's lending banks, The Royal
Bank of Scotland International Limited and The Royal Bank of
Scotland plc (the "Banks"), to restructure the Company's existing
loan facility (the "Existing Facility"). Based on that agreement in
principle, the Directors expect that under the restructured loan
facility (the "Restructured Facility"):
-- both the margin currently payable under the Existing Facility
and the final maturity date of the Existing Facility will remain
unchanged;
-- the maximum permitted loan to value ratio and minimum
permitted interest cover ratio will be amended to reflect IPIT's
financial position; and
-- the Banks will have a quasi-equity participation in IPIT on
the expiry of the Restructured Facility or, if earlier, on the
refinancing of that facility or disposal of all of the properties
currently owned by IPIT's subsidiaries.
Whilst the proposed Restructured Facility has received the
necessary credit approvals within the Banks, it remains subject to
the negotiation of the legal documentation to give it effect and to
other standard conditions precedent required in connection with an
amendment of an existing facility of this type.
The Restructured Facility is not expected to include any
pre-determined targets for property sales or prepayment of bank
borrowings. However, in view of the Company's current financial
condition and the requirement to repay or refinance the Company's
bank borrowings on or before 28 September 2014, it will be
necessary to make changes to the Company's investment objective and
policy. As required by the Listing Rules, the proposed changes to
the Company's investment policy will be subject to the approval, by
ordinary resolution, of shareholders. Accordingly, it is a
pre-condition to the Restructured Facility that such approval is
obtained. The Directors intend to seek such approval once the
Company and the Banks have entered into a legally binding agreement
with regard to the Restructured Facility (shareholder approval of
the change of investment policy will be a condition precedent of
that agreement).
A further announcement will be made as soon as practicable.
Enquiries
Sue Inglis Canaccord Genuity Limited 020 7050 6779
Richard Barnes Invesco Property Income Trust Limited 01534 629 001
Rory Morrison/ Invesco Asset Management Limited 020 7543 3581/
Angus Pottinger 020 7065 3714
Note
Canaccord Genuity Limited is acting solely for Invesco Property
Income Trust Limited and no one else in connection with the matters
referred to in this announcement and will not be responsible to
anyone other than Invesco Property Income Trust Limited for
providing the protections afforded to clients of Canaccord Genuity
Limited or for providing advice in relation to the matters referred
to in this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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