Debt Re-Structuring

10 Mar 2008 07:01

Teesland Advantage Property Inc Tst10 March 2008 10 March 2008 TEESLAND ADVANTAGE PROPERTY INCOME TRUST LIMITED ("TAP" OR "THE COMPANY") TAP RE-STRUCTURES DEBT AND CONTINUES DEBT REPAYMENT STRATEGY TAP, the listed UK commercial property investment company, which is advised byValad Property Group, announces: - the receipt of £7.87million in settlement of its insurance claim on its property in Hemel Hempstead;- the completion of a new revolving credit facility; and- the imminent repayment of £8.0million of debt. The insurance settlement relates to the Company's property at Hemel Hempsteaddamaged as a result of the Buncefield Oil Depot explosion. Chris Carter Keall of VALAD explained "The settlement provides an uplift of 30%from the September 2007 Valuation. In addition to the £7.87million settlement,the Company retains the freehold of the 4.5 acre site, which will either beredeveloped or sold dependant upon the future development at Buncefield. The Company has completed a renegotiation of the £98.3m debt facility with HBOS.The new revolving credit facility provides additional flexibility to borrowingsthrough the repayment and drawing of debt as and when required. TAP will repay £8.0million of debt (6.4% of the total current debt) received asa result of the settlement and recent sales, which further improves dividendcover for the Company. Christopher Fish, Chairman of TAP said: "We have completed a great deal ofanalysis on the most efficient way to improve dividend cover, reduce costs andlower loan to value. At this time, our analysis shows that the repayment offloating rate debt has the most impact on our key performance indicators". For further information: Chris Carter Keall, VALAD Property Group: 020 7659 6666Graham Swindells, Kaupthing, Singer & Friedlander 020 3205 7500Jeremy Carey/Simon Hudson, Tavistock Communications Limited 020 7920 3150Anson Fund Managers Limited, Secretary 01481 722260 E&OE - in transmission END OF ANNOUNCEMENT This information is provided by RNS The company news service from the London Stock Exchange