LONDON (Alliance News) - MedicX Fund Ltd said Tuesday it has refinanced GBP233.7 million of existing Aviva loan facilities, as well as increasing the loan facility by a further GBP30.8 million.
The company said it benefits from resetting the loan to value covenant on the legacy structured debt portfolio to 65%, releasing about GBP72 million of charged property collateral.
MedicX will use about GBP47 million of that to increase the loan facility, and the remaining GBP25 million includes eight selected properties that have been released from charge.
This, according to MedicX, provides flexibility to undertake asset management projects at those locations as well as increasing unencumbered collateral to negotiate future facilities at current market rates.
The primary care infrastructure investor believes the refinancing enables it to take the opportunity to rationalise part of its structure, which will see improved efficiency through the elimination of six non-trading subsidiaries which no longer own investment property.
The new loan facility consists of a new GBP30.8 million 10 year interest only tranche with a fixed interest rate of 3.05% per annum, together with a GBP233.7 million 15 year partially amortising tranche with a fixed interest rate of 4.69% per annum.
Following the refinancing, adjusted gearing - the ratio of total debt to total assets, in each case net of cash - will increase marginally to 53.3% from 52.5% at June, and the weighted average unexpired term of debt will increase to 11.7 years from 11.0.
Chairman Helen Mahy said "We are delighted to have agreed a refinancing with our long-term funding partner Aviva Investors. The new arrangements will improve operational efficiency and free up property collateral, enabling MedicX to undertake identified asset management projects and negotiate new facilities at competitive rates which should reduce MedicX's average cost of debt".
Shares in MedicX closed down 0.8% Tuesday at 76.60 pence each.