Last checked at 24 Feb 2015 07:00
24 February 2015
Empiric Student Property plc
("Empiric" or the "Company" or, together with its subsidiaries, the "Group")
Increased Term Loan Facility agreed with RBS
The Board of Empiric Student Property plc (ticker: ESP) is pleased to announce that, further to the announcement on 24 October 2014 of a £35.5 million term loan facility (the "Original Loan") with The Royal Bank of Scotland plc ("RBS"), the Group has agreed an amended and restated facility (the "RBS Facility") with RBS under which RBS has made a revolving (re-drawable) term loan facility of £55.5 million available to the Group.
Subject to certain conditions, including the approval by RBS of the suitability of any new properties introduced as security, the RBS Facility provides the Group with the flexibility to change the assets against which the loan is secured and/or increase or reduce the amount of loan drawn down up until three months prior to the termination date (being 24 October 2019).
The amount of £35.5 million currently advanced under the Original Loan is fully hedged via a co-terminus five year interest rate swap with NatWest Bank. The rate of interest payable on the hedged portion of the RBS Facility is equal to a margin of 1.9 per cent. above the swap rate. The interest rate on any unhedged amounts (if any) drawn down under the RBS Facility from time to time is 1.9 per cent. above LIBOR. The Company currently intends to put in place interest hedging arrangements in respect of any further amounts drawn down under the RBS Facility.
The amounts drawn down under the RBS Facility will be segregated and non-recourse to the Company.
As set out in the Company's investment policy, the Company will maintain a conservative level of aggregate borrowings of no more than 40 per cent. of the gross asset value of the Company (calculated at the time of draw down).
For further information on the Company, please contact:
Empiric Student Property plc | (via Newgate Communications) |
Paul Hadaway (Chief Executive) |
|
Tim Attlee (Chief Investment Officer) |
|
Michael Enright (Chief Financial Officer) |
|
|
|
Akur Limited (Joint Financial Adviser) | Tel: 020 7493 3631 |
Tom Frost |
|
Anthony Richardson |
|
Siobhan Sergeant |
|
|
|
Jefferies International Limited (Joint Financial Adviser and Broker) | Tel: 020 7029 8000 |
Gary Gould |
|
Stuart Klein |
|
Alex Collins |
|
|
|
Newgate Communications (Financial PR) | Tel: 020 7680 6550 |
James Benjamin | Em: empiric@newgatecomms.com |
Andre Hamlyn |
|
Further information on ESP can be found on the Company's website at www.espreit.co.uk.
Notes:
Empiric Student Property plc (incorporated in England & Wales) is an internally managed real estate investment trust ("REIT") investing in modern, premium, student accommodation, with a focus on quality and with assets generally in prime city centre locations in top university cities in the UK. The Company listed on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in June 2014.