restructuring news24 Mar 2011 07:47
INVESCO PROPERTY INCOME TRUST LIMITED, PROPOSED RESTRUCTURING OF bank FACILITY
The Directors of Invesco Property Income Trust Limited ("IPIT" or the "Company") are pleased to announce that they have reached agreement in principle with the Company's lending banks, The Royal Bank of Scotland International Limited and The Royal Bank of Scotland plc (the "Banks"), to restructure the Company's existing loan facility (the "Existing Facility"). Based on that agreement in principle, the Directors expect that under the restructured loan facility (the "Restructured Facility"):
Both the margin currently payable under the Existing Facility and the final maturity date of the Existing Facility will remain unchanged;
The maximum permitted loan to value ratio and minimum permitted interest cover ratio will be amended to reflect IPIT's financial position; and
The Banks will have a quasi-equity participation in IPIT on the expiry of the Restructured Facility or, if earlier, on the refinancing of that facility or disposal of all of the properties currently owned by IPIT's subsidiaries.
Whilst the proposed Restructured Facility has received the necessary credit approvals within the Banks, it remains subject to the negotiation of the legal documentation to give it effect and to other standard conditions precedent required in connection with an amendment of an existing facility of this type.
The Restructured Facility is not expected to include any pre-determined targets for property sales or prepayment of bank borrowings. However, in view of the Company's current financial condition and the requirement to repay or refinance the Company's bank borrowings on or before 28 September 2014, it will be necessary to make changes to the Company's investment objective and policy. As required by the Listing Rules, the proposed changes to the Company's investment policy will be subject to the approval, by ordinary resolution, of shareholders. Accordingly, it is a pre-condition to the Restructured Facility that such approval is obtained. The Directors intend to seek such approval once the Company and the Banks have entered into a legally binding agreement with regard to the Restructured Facility (shareholder approval of the change of investment policy will be a condition precedent of that agreement).
A further announcement will be made as soon as practicable.
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