10 Nov 2015 07:00
F&C UK REAL ESTATE INVESTMENTS LTD - Refinancing UpdateF&C UK REAL ESTATE INVESTMENTS LTD - Refinancing Update
PR Newswire
London, November 10
F&C UK REAL ESTATE INVESTMENTS LIMITED
10 NOVEMBER 2015
REFINANCING UPDATE
Further to the announcement on 29 September 2015 by F&C UK Real Estate Investments Limited (the "Company") in respect of the proposed refinancing of the existing facilities with Lloyds Bank plc, the Board can now confirm that the Group has executed a conditional £90 million 11 year non-amortising term loan facility agreement with Canada Life Investments and a £20 million 5 year revolving credit facility agreement with Barclays Bank plc (the "New Facilities").
Under the New Facilities the Group will be entitled, subject to the satisfaction of certain conditions precedent, to draw down up to £110 million to finance the repayment of the £102 million term loan facility provided by Lloyds Bank plc, which was due for repayment in January 2017. There is no early repayment penalty in respect of the Existing Facility but the Group will terminate its existing interest rate hedging arrangements entered into in connection with the Existing Facility and is to be liable for the cost of breaking the relevant interest rate swap which was accounted for as a liability, net of accrued interest of £5.7 million at 30 September 2015. No further swap is required given the fixed nature of the principal loan.
The Board further confirms that it has today fixed the interest rate that will be payable over the term of the loan with Canada Life Investments at the all-in rate of 3.36 per cent. per annum (including the yield on the relevant UK Gilt) and the interest rate that will be payable in respect of the revolving credit facility with Barclays Bank plc at the rate of 1.45 per cent. per annum over 3 month LIBOR. It is the Company's intention that the debt will be drawn down on or around 13 November 2015.
All enquiries to:
Ian McBrydeScott MacraeF&C Investment Business Limited
Tel: 0207 628 8000
The Company SecretaryNorthern Trust International Fund Administration Services (Guernsey) LimitedTrafalgar CourtLes BanquesSt Peter PortGuernsey GY1 3QL
Tel: 01481 745001