Lok'nStore extends facility to help fund site acquisitions

(Sharecast News) - Self storage company Lok'nStore announced the agreement of a one-year extension to its existing joint banking facility with Royal Bank of Scotland and Lloyds Bank on Monday.
The AIM-traded firm said the £75m five-year revolving credit facility, which was executed last year, included two extension options - one of which had now been implemented.

It said the facility, which was due to expire in April 2024, would now run until April 2025, providing funding for more landmark site acquisitions.

The facility set the interest rate margin at LIBOR plus between 1.5% and 1.75%, based on a loan-to-value covenant test.

That rate was currently 1.5%, and Lok'nStore said its current all-in debt cost on the £51.2m drawn was averaging between 1.6% and 1.7%.

The facility also provided for a £25m accordion uplift to £100m, with the board confirming that bank covenants and margin were unaffected by the extension.

"This extension of our existing banking facility with its extremely competitive terms and flexible structure underlines the financial strength of Lok'nStore," said chief executive officer Andrew Jacobs.

"Our current pro forma loan to value ratio is 19.9% net of cash with a pro forma cash position of £12.6m.

"With our modest gearing, valuable property assets and strong and growing cash flow the group will continue to execute its current growth strategy as the economy returns to normal."

At 1120 BST, shares in Lok'nStore were down 1.65% at 614.7p.