Last checked at 
30 Jan 2018 11:44
Target Healthcare REIT Limited
REVOLVING CREDIT FACILITY
Target Healthcare REIT Limited and its subsidiaries (the "Group") is pleased to announce it has secured a Revolving Credit Facility (the "RCF") of £40 million from HSBC Bank plc.
The RCF has a margin of 170 basis points over 3 month LIBOR which is currently equivalent to a total interest cost of 2.23% per annum and an all-in cost (inclusive of arrangement costs) of 2.81% per annum.
The facility agreement contains a typical security package including loan to value and interest cover ratio covenants which are broadly in-line with the Group's existing debt arrangements. The RCF has an initial three year term also provides an option of two one year extensions thereafter, subject to the consent of HSBC.
The Group's existing £50 million committed term loan and revolving credit facility with The Royal Bank of Scotland plc, which is repayable in September 2021, remains in place. The £40 million committed term loan facility with First Commercial Bank, Limited, which is repayable in August 2022 also remains in place.
The RCF will provide the Group with flexible capital to pursue investment opportunities as they arise while also allowing the Company to manage its capital structure in line with its investment policy. It remains the Board's intention that borrowings, over the medium term, should represent approximately 20 per cent. of the Group's gross assets.
Gordon Bland, Finance Director of Target Fund Managers Limited, said:
"We are delighted to secure this new facility from HSBC Bank plc for the Group. The fully revolving nature of the facility complements the Group's existing facilities, and provides operational flexibility as we assess a variety of attractive investment opportunities in the market. "
Target Healthcare legal entity identifier: 2138008VQQ5Y9QXMX749
Enquiries:
Kenneth MacKenzie, Gordon BlandTarget Fund Managers Limited01786 845 912
Mark Young, Neil Winward, Tom Yeadon
Stifel Nicolaus Europe Limited
020 7710 7600
Martin CasselsMaitland Administration Services (Scotland) Limited0131 550 3760
Fiona Harris/Sam Emery
Quill PR
020 7466 5058 / 020 7466 5056
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations ((EU) No. 596/2014). Upon the publication of this announcement via Regulatory Information Service this inside information is now considered to be in the public domain.