Triple Point Social Housing REIT FIXED RATE LOAN NOTES OF £68.5 MILLION (4069V)
July 23 2018 - 2:00AM
UK Regulatory
TIDMSOHO
RNS Number : 4069V
Triple Point Social Housing REIT
23 July 2018
THIS ANNOUNCEMENT HAS BEEN DETERMINED TO CONTAIN INSIDE
INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU)
NO. 596/2014.
23 July 2018
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the
"Group")
FIXED RATE LOAN NOTES OF GBP68.5 MILLION
The Board of Triple Point Social Housing REIT plc (tickers:
SOHO; SOHC) is pleased to announce that the Group has entered into
a long dated, fixed rate, interest only financing arrangement in
the form of a private placement of loan notes in an amount of
GBP68.5 million with a US life insurance company (the "Loan
Notes").
The Loan Notes are secured against a portfolio of specialist
supported living assets throughout the UK, worth approximately
GBP172 million, acquired in the period from admission in August
2017 to the end of March 2018. The amounts which have been drawn
down under the Loan Notes are segregated and non-recourse to the
Company.
The Loan Notes are split into two tranches: Tranche-A, in an
amount of GBP41.5 million, has a term of 10 years from utilisation
and is priced at an all-in coupon of 2.924%; and Tranche-B, in an
amount of GBP27 million, has a term of 15 years from utilisation
and is priced at an all-in coupon of 3.215%. On a blended basis,
the weighted average term is 12 years carrying a weighted average
fixed rate coupon of 3.039%.
The Loan Notes represent a loan-to-value ("LTV") of 40% of the
value of the secured assets referred to above, which is in line
with the Company's investment policy and long term debt strategy of
securing low LTV, long dated debt to capitalise on the low interest
rate environment in order to enhance shareholder returns.
The Loan Notes are the first of a planned debt funding programme
designed to support the Company's continued growth. Triple Point
Investment Management LLP, the Company's Delegated Investment
Manager, intends to utilise the proceeds of the Loan Notes to fund
an extensive pipeline of further acquisitions over the next three
to five months.
In accordance with its investment policy, the Company will
maintain a prudent level of gearing, targeting a level of aggregate
borrowings of 40% of the Group's gross asset value, subject to an
absolute maximum of 50% of the Group's gross asset value
(calculated at the time of draw down).
Chris Phillips, Chairman of Triple Point Social Housing REIT
plc, said:
"We are delighted to have secured this new debt funding which
provides the Company with a long dated, senior financing package at
an attractive fixed rate, which will be accretive to the Company's
dividend yield. This partnership allows the Company to build a long
term relationship with a global partner and to implement the long
term debt strategy communicated to our investors. This first
successful debt raise is one of a series of debt raises due to be
secured in the short to medium term."
IDCM acted as Sole Arranger and Gowling WLG acted as legal
advisor to the Group.
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
Triple Point Investment Management (via Newgate below)
LLP
(Delegated Investment Manager)
James Cranmer
Ben Beaton
Max Shenkman
Justin Hubble
Akur Limited (Joint Financial Adviser) Tel: 020 7493 3631
Tom Frost
Anthony Richardson
Siobhan Sergeant
Canaccord Genuity Limited (Joint Tel: 020 7523 8000
Financial Adviser and Corporate
Broker)
Lucy Lewis
Denis Flanagan
Andrew Zychowski
Newgate (PR Adviser) Tel: 020 7680 6550
James Benjamin Em: triplepoint@newgatecomms.com
Anna Geffert
Patrick Hanrahan
The Company's LEI is 213800BERVBS2HFTBC58.
Further information on the Company can be found on its website
at www.triplepointreit.com.
NOTES:
The Company invests in social housing assets in the UK, with a
particular focus on supported housing. The assets within the
portfolio are subject to inflation-adjusted, long-term (typically
from 20 years to 30 years), Fully Repairing and Insuring ("FRI")
leases with Approved Providers (being Housing Associations, Local
Authorities or other regulated organisations in receipt of direct
payment from local government). The portfolio comprises investments
into properties which are already subject to an FRI lease with an
Approved Provider, as well as forward funding of pre-let
developments but does not include any direct development or
speculative development.
There is increasing political and financial pressure on Housing
Associations to increase their housing delivery and this is
creating opportunities for private sector investors to participate
in the market. The Group's ability to provide forward financing for
new developments not only enables the Company to secure fit for
purpose, modern assets for its portfolio but also addresses the
chronic undersupply of suitable supported housing properties in the
UK at sustainable rents and delivering returns to investors.
Triple Point Investment Management LLP (part of the Triple Point
Group) is responsible for management of the Group's portfolio (with
such functions having been delegated to it by Langham Hall Fund
Management LLP, the Company's alternative investment fund
manager).
The Company was admitted to trading on the Specialist Fund
Segment of the Main Market of the London Stock Exchange on 8 August
2017 and was admitted to the premium segment of the Official List
of the Financial Conduct Authority and migrated to trading on the
premium segment of the Main Market on 27 March 2018. The Company
operates as a UK Real Estate Investment Trust ("REIT") and is a
constituent of the FTSE EPRA/NAREIT index.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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