Life Science REIT PLC Debt Refinancing (9669D)
27 June 2023 - 4:00PM
UK Regulatory
TIDMLABS
RNS Number : 9669D
Life Science REIT PLC
27 June 2023
27 June 2023
LEI 2 13800RG7JNX7K8F7525
Life Science REIT plc
("Life Science REIT" or the "Company")
Debt Refinancing including the Company's first Green Loan
Syndication and extension of existing debt facility with HSBC
and Bank of Ireland
New facility secures development funding for Oxford Technology
Park
The Board of Life Science REIT (LSE: LABS), the real estate
investment trust focused on UK life science properties, is pleased
to announce that it has refinanced its existing GBP150 million Term
Loan and Revolving Credit Facility ("RCF") secured on its existing
portfolio, including Oxford Technology Park ("OTP"). The refinanced
Term Loan and RCF have been provided by existing lender HSBC, with
an additional lender, Bank of Ireland ("BoI"), also joining the
banking syndicate (collectively the "Lenders").
The HSBC and BoI facilities include a GBP100 million fully drawn
term loan, increased from GBP75 million, and a GBP50 million RCF
facility, both of which have had their terms extended to March
2026, with two further one year extensions available, if required.
Both facilities are split 60:40 between HSBC and BoI, respectively.
Additionally, the Company has a GBP35 million accordion facility
available on the RCF, if required.
Both facilities now carry a cost of SONIA plus a 2.50% margin.
The SONIA reference rate on both facilities has been capped at
2.00% per annum until March 2025. The facility also includes a
ratchet clause that reduces the margin rate to 2.35% if the Gross
Loan to Value ratio decreases to 30% (based on the Lenders' annual
valuation of the portfolio).
The Company has also defined GBP40 million of the Term Loan
facility as a Green Loan in accordance with the LMA Green Loan
Principles, secured on Rolling Stock Yard in London and completed
OTP buildings, which are rated either BREEAM Excellent or EPC
"A".
Following this refinancing GBP48.7 million remains available in
the RCF to be utilised in funding the ongoing development at OTP
which will be drawn on a quarterly basis to meet development
funding requirements and minimise interest costs throughout the
remaining development period. The Company is currently progressing
388,400 sq ft of development at OTP, set to be completed by
2024.
The Company repaid the development debt facility acquired with
OTP in February 2023, which carried a significantly higher interest
rate.
Simon Farnsworth, Managing Director of Ironstone Asset
Management Ltd, the Company's Investment Adviser, said:
"We are pleased to have completed this refinancing which
increases the Company's overall funding capacity and extends the
term of the debt . The new facility includes the Company's first
ever Green Loan, reflecting the high quality and excellent
sustainability credentials of the portfolio's buildings.
"In this more challenging economic environment, this refinancing
represents a highly positive outcome for the Company and we are
delighted to welcome Bank of Ireland to the syndicate."
Enquiries:
Link Company Matters Limited - Company
Secretary
labs_cosec@linkgroup.co.uk
Ironstone Asset Management - Investment
Adviser
Simon Farnsworth / David Lewis / Joanna via Buchanan below
Waddingham
Panmure Gordon (UK) Limited -Joint Corporate
Broker +44 20 7886 2500
Alex Collins / Tom Scrivens
Jefferies International Limited - Joint
Corporate Broker +44 20 7029 8000
Tom Yeadon / Andrew Morris / Oliver Nott
/ Harry Randall
G10 Capital Limited - AIFM +44 20 7397 5450
Verity Morgan-Jones / Paul Cowland
Buchanan - Financial PR +44 20 7466 5000
Mark Court / Henry Wilson / Verity Parker
LifeSciencereit@buchanan.uk.com
Notes to editors
Life Science REIT plc is a specialist property business focused
on the UK's growing life science sector. The Company's portfolio of
assets is located across the "Golden Triangle" of research and
development hubs in Oxford, Cambridge and London's Knowledge
Quarter and its strategic vision is to become the property provider
of choice for life science companies in the UK.
Life Science REIT is addressing the acute demand-supply
imbalance for laboratory space in the "Golden Triangle", which is
characterised by low vacancy rates and prime rental increases. The
UK life science sector itself is benefiting from a buoyant
early-stage funding environment, driving demand for laboratory
space.
The Company's diverse portfolio of assets ranges from a 20-acre
science park currently under development through to fully let
buildings, with an important part of the Company's strategy being
the conversion of existing properties to laboratory space.
The Company's investment policy is focused on capital growth
whilst also providing a growing level of income.
Life Science REIT trades on the Main Market of the London Stock
Exchange under the ticker LABS.
Further information is available at
https://lifesciencereit.co.uk . To sign up for email alerts, please
visit https://lifesciencereit.co.uk/investors/ .
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END
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