LXI REIT extends loan facility, reduces interest rate

(Sharecast News) - LXi REIT has made changes to its three term loan facilities with Scottish Widows, it announced on Tuesday, that would reduce the interest rate payable and extend the maturity date.
The FTSE 250 real estate investment trust said the loans would now carry a reduced all-in fixed interest rate to maturity of 2.85% per annum, which was expected to generate a cash saving of about £2m over the extended loan term, which had increased to 13 years for each facility.

As part of the agreement, the firm said the existing security pools had been cross collateralised to provide further diversification to the lender, and enhanced operational flexibility to the group.

The loans previously carried a weighted average all-in fixed rate of 2.94% per annum, and had a weighted average term to maturity of 10 years.

LXi said the level of borrowings under the loans of £170m, and all other commercial terms, remained as before.

No arrangement fee was charged, and no break cost would be incurred.

"We are pleased to have extended the maturity date and reduced the interest rate of our long-term loans," said chief financial officer Freddie Brooks.

"The changes will provide enhanced visibility, operational flexibility and free cash flows for the group.

"We have developed a strong relationship with Scottish Widows and these changes further underline their support for our secure, long dated and well diversified portfolio."

At 0829 GMT, shares in LXi REIT were up 1.56% at 110.29p.