Refinancing completed17 Feb 2010 13:37
15 October 2009
O TWELVE ESTATES ANNOUNCES SUCCESSFUL RESTRUCTURE OF
GROUP'S LOAN FACILITIES
The directors of O Twelve are pleased to announce the restructuring of the Group's loan facilities with Nationwide Building Society and the other lenders. The revised loan terms, which are substantially the same as those agreed in principle as reported in the Group's results announcement on 15 July 2009, are as follows:
The term of the facility until December 2014 is unchanged;
The facility will reduce to £140 million on 31 March 2011;
The interest margin over Libor will increase from 0.65% per annum to 1.25% per annum;
An arrangement fee of £850,000 has been paid on signing;
A fee of £5,950,000 will be payable on final repayment of the facility;
LTV will not be tested until the Lenders receive the portfolio valuation as at 31 March 2011, at which time the LTV must not exceed 85%, reducing to 80% from 31 March 2012 and 75% from 31 March 2013;
The minimum interest cover ratio will be 115%, provided that, if rent free periods were treated as rent passing the ratio would be at least 120% until 31 March 2011, increasing to 120% thereafter;
Cash lock up will continue until the LTV is 70% or less. However, after deducting finance costs, direct property outgoings and property management fees, the Lenders will allow the Group to receive up to £400,000 per quarter to cover overheads, tax and other property expenses.