LONDON (Alliance News) - Picton Property Income Ltd on Wednesday said it has entered into a five-year GBP27 million revolving credit facility with Santander UK PLC's Santander Corporate & Commercial Banking.
This facility will provide Picton with greater operation flexibility, it said. Along with Picton's other facilities, it can be used to meet the repayment of 7.25% Zero Dividend Preference Shares that mature in October of this year and will provide it with "additional firepower to make opportunistic acquisitions".
The facility is secured across four property assets, and has a non-utilisation fee of 70 basis points, equivalent to GBP190,000 per year. Once drawn it will incur an interest charge equivalent to 2.3% per year.
"This transaction will enable Picton to simplify its corporate structure in October through the repayment of ZDPs, extending the group's debt maturity profile and reducing the overall cost of debt," said Chairman Nicholas Thompson in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Picton Prop (PCTN)