LXI REIT PLC New Fixed Rate Term Loan Facility (0194Z)
12 December 2017 - 6:00PM
UK Regulatory
TIDMLXI
RNS Number : 0194Z
LXI REIT PLC
12 December 2017
12 December 2017
LXi REIT plc
(the "Company" or "LXi REIT")
NEW FIXED RATE 11.5-YEAR TERM LOAN FACILITY OF GBP40 MILLION
SIGNED WITH SCOTTISH WIDOWS AT 2.85%
The Board of LXi REIT plc (ticker: LXI) is pleased to announce
that the Company has signed a new 11.5-year, fixed rate, interest
only loan facility of GBP40 million with Scottish Widows Limited,
acting in partnership with Lloyds Bank Commercial Banking (the
"Second Facility").
The Second Facility is repayable on 3 July 2029, the same date
as the expiry date of the Company's existing GBP55 million Scottish
Widows loan (the "First Facility").
The Second Facility has a fixed all-in rate payable of 2.85% per
annum, for the duration of the loan term.
The Company's average debt maturity across all facilities is
11.5 years and its weighted average all-in cost of debt is now
2.90% per annum.
This average interest rate is 311 basis points lower than the
Company's average net initial property yield of 6.01%.
The First Facility and the Second Facility are both secured
against the assets acquired by the Company utilising the Company's
IPO proceeds of 27 February 2017 and its second equity issue of 12
October 2017.
The full drawing of the Second Facility will reflect a
loan-to-value ratio of 32%, when aggregated with the First
Facility. As set out in the Company's investment policy, the
Company will maintain a conservative level of aggregate borrowings,
with a maximum level of aggregate borrowings of 35% of the
Company's gross assets.
The Second Facility provides the debt resource needed to support
the Company's acquisition of additional long-let index-linked
assets, comprising both pre-let forward funded and built
properties.
The Company has fully deployed its net equity and is in
solicitors' hands on additional acquisitions which will fully
absorb the debt finance under the Second Facility in the next few
weeks.
Simon Lee, Partner of LXi REIT Advisors Limited, commented:
"We are delighted to have entered into this new 11.5-year loan
facility with Scottish Widows. This provides the Company with a
second, long-dated senior financing package at a very attractive
fixed rate, which is highly accretive to the Company's dividend
yield."
The Company's LEI is: 2138008YZGXOKAXQVI45
FOR FURTHER INFORMATION, PLEASE CONTACT:
LXI REIT Advisors Limited Via Newgate Communications
John White (Partner, Fund
Manager)
Simon Lee (Partner, Fund Manager)
----------------------------------- ---------------------------------
Peel Hunt LLP Tel: 020 7418 8900
Luke Simpson
----------------------------------- ---------------------------------
Newgate Communications (PR Tel: 020 7680 6550
Adviser) Email: lxireit@newgatecomms.com
James Benjamin
Anna Geffert
Lydia Thompson
----------------------------------- ---------------------------------
NOTES:
The Company invests in UK commercial property assets let, or
pre-let, on very long (typically 20 to 30 years to expiry or first
break), inflation-linked leases to a wide range of strong tenant
covenants across a diverse range of property sectors.
The Company may invest in fixed-price forward funded
developments, provided they are pre-let to an acceptable tenant and
full planning permission is in place. The Company will not
undertake any direct development activity nor assume direct
development risk.
The Company is targeting a minimum annual dividend of 5 pence
per ordinary share, starting from the financial period commencing 1
April 2018, with the potential to grow the dividend in absolute
terms through upward-only inflation-protected long-term lease
agreements, and is targeting a net total shareholder return of 8
per cent. plus per annum over the medium term(1) .
The Company, a real estate investment trust ("REIT")
incorporated in England and Wales, is listed on the premium listing
segment of the Official List of the UK Listing Authority and was
admitted to trading on the main market for listed securities of the
London Stock Exchange in February 2017.
Further information on the Company is available at
www.lxireit.com
Note 1: these are targets only and not a profit forecast and
there can be no assurance that they will be met.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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