Picton Prop Inc Ltd Update Following ZDP Repayment

 
TIDMPCTN 
 
18 October 2016 
 
                        PICTON PROPERTY INCOME LIMITED 
                          ("Picton" or the "Company") 
 
              UPDATE FOLLOWING RECENT DISPOSALS & DEBT REPAYMENTS 
 
Picton (LSE: PCTN), is pleased to provide an update following the repayment of 
all its 7.25% zero dividend preference shares and revolving credit facility, 
together with asset disposals announced in August and October:- 
 
  * GBP45 million of NAV accretive disposals, reducing central London office 
    exposure. 
  * Repayment of GBP15.8 million previously drawn under a revolving credit 
    facility. 
  * Repayment of GBP29.1 million made to zero dividend preference shareholders 
    due on 15 October 2016. 
  * Picton ZDP Ltd (LSE: PCTZ) delisted on 17 October 2016. 
  * As a result of this change Picton will be classified by the Association of 
    Investment Companies (AIC) in the 'Property Direct - UK' sector only, 
    rather than also in the 'Split Capital Trust' sector. 
 
In terms of borrowings, on a proforma basis to 30 June 2016, the effect of the 
debt repayments and disposal proceeds are as follows:- 
 
  * Total drawn debt reduced to GBP205.2 million (30 June 2016: GBP249.7 million). 
  * Average debt maturity increased to 12.2 years (30 June 2016: 10.4 years). 
  * Loan to value ratio reduced to 29.6% (30 June 2016: 34.4%). 
  * Weighted average cost of debt reduced to 4.2% (30 June 2016: 4.4%). 
  * GBP53 million of undrawn and available debt facilities. 
 
The Company will be providing further detail in its September NAV statement 
which is to be issued on 25 October 2016. 
 
Michael Morris, CEO of Picton Capital commented: 
"By repaying our ZDP's and RCF debt, we have reduced our net gearing, lowered 
our borrowing costs and simplified our structure, all of which we believe are 
beneficial for the Company.  We have minimal cash drag, whilst at the same time 
having immediate access to funds, should accretive opportunities arise." 
 
 
For further information: 
 
Tavistock 
Jeremy Carey/James Verstringhe, 020 7920 3150, jverstringhe@tavistock.co.uk 
 
 
Picton Capital Limited 
Michael Morris, 020 7011 9980, michael.morris@picton.co.uk 
 
 
Note to Editors 
Picton is an income focused property investment company listed on the London 
Stock Exchange. Picton can invest both directly and indirectly in commercial 
property across the United Kingdom. 
 
With Net Assets of GBP418.0 million at 30 June 2016, the Company´s objective is 
to provide shareholders with an attractive level of income, together with the 
potential for capital growth by investing in the principal commercial property 
sectors.  www.picton.co.uk 
 
 
                                     ENDS 
 
 
 
END

(END) Dow Jones Newswires

October 18, 2016 02:00 ET (06:00 GMT)

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