TIDMMXF
RNS Number : 4726A
The MedicX Fund Limited
11 September 2018
For immediate release
11 September 2018
MedicX Fund Limited
("MedicX", the "Fund" or the "Company")
GBP264.5 million refinancing of Aviva Investors debt
facilities
MedicX, the specialist primary care infrastructure investor in
modern purpose-built primary healthcare properties in the United
Kingdom and Republic of Ireland, is delighted to announce that it
has successfully refinanced GBP233.7 million of existing Aviva loan
facilities, as well as increasing the loan facility by a further
GBP30.8 million.
MedicX benefits from resetting the Loan to Value ("LTV")
covenant on the legacy restructured debt portfolio to 65%, thereby
enabling the release of c.GBP72 million of charged property
collateral, c.GBP47 million of which has been applied to increase
the loan facility. The remaining c.GBP25 million includes eight
selected properties that have been released from charge, providing
flexibility to undertake asset management projects identified at
those locations as well as increasing unencumbered collateral to
negotiate future facilities at current market rates. Lastly, the
refinancing enables MedicX to take the opportunity to rationalise
part of its group structure which will see improved efficiency
through the elimination of six non-trading subsidiaries which no
longer own investment property.
The refinancing, which was conducted without incurring break
fees on the refinanced loan facilities, combined forty six tranches
across twenty legacy loan agreements, into two tranches under one
new loan agreement.
The new loan facility consists of a new GBP30.8 million 10 year
interest only tranche with a fixed interest rate of 3.05% per
annum, together with a GBP233.7 million 15 year partially
amortising tranche with a fixed interest rate of 4.69% per annum
(equal to the blended current cost of the existing facilities).
Amortisation of GBP40 million will be spread over the 15 year term
of the GBP233.7 million tranche, with the remaining GBP193.7
million repayable at maturity.
The new facility agreement standardises the covenants that will
apply to the new facility. These will require the Group to operate
with a debt service cover ratio of at least 140% throughout and
with an LTV of no more than 75% for the first five years, falling
to 70% for years six to ten and then 65% for the remaining term.
The facilities will be fully drawn immediately, with the net
proceeds from the new GBP30.8 million tranche used in the first
instance to repay the GBP20 million drawn RBS Revolving Credit
Facility ("RCF"), with the excess held as cash until deployed into
investment properties either under construction or forming part of
the Company's acquisition pipeline.
Following the refinancing, the Group's adjusted gearing (the
ratio of total debt to total assets, in each case net of cash) will
increase marginally to 53.3% (June 2018: 52.5%) and the weighted
average unexpired term of debt will increase from 11.0 to 11.7
years. The Group's weighted average cost of debt remains almost
unchanged at 4.26%, from 4.25% at 30 June 2018.
Helen Mahy, Chairman, said "We are delighted to have agreed a
refinancing with our long-term funding partner Aviva Investors. The
new arrangements will improve operational efficiency and free up
property collateral, enabling MedicX to undertake identified asset
management projects and negotiate new facilities at competitive
rates which should reduce MedicX's average cost of debt".
- End -
For further information please contact:
Octopus Healthcare Adviser Limited +44 (0) 345 0404 5555
Octopus Healthcare Group +44 (0) 20 3142 4820
Mike Adams, Executive Chairman
Canaccord Genuity +44 (0) 20 7523 8000
Andrew Zychowski/Helen Goldsmith
Liberum +44 (0) 20 3100 2000
Richard Crawley/Jamie Richards
Buchanan +44 (0) 20 7466 5000
Charles Ryland/Henry Wilson
Information on MedicX Fund Limited
MedicX Fund Limited ("MedicX", the "Fund" or the "Company", or
together with its subsidiaries, the "Group") is the specialist
primary care infrastructure investor in modern, purpose-built
primary healthcare properties in the United Kingdom, listed on the
London Stock Exchange, with a portfolio comprising 166
properties.
The Investment Adviser to the Company is Octopus Healthcare
Adviser Ltd, which is part of the Octopus Healthcare group. Octopus
Healthcare invests in and develops properties as well as creating
partnerships to deliver innovative healthcare buildings to improve
the health, wealth and wellbeing of the UK. It currently manages
over GBP1.4 billion of healthcare investments across a number of
platforms, with a focus on five core areas: GP surgeries, care
homes, special education schools, retirement housing and private
hospitals. Octopus Healthcare is part of the Octopus group, a
fast-growing UK fund management business with leading positions in
several specialist sectors including healthcare property, energy,
property finance and smaller company investing. Octopus manages
GBP8.0 billion of funds for more than 50,000 retail and
institutional investors, as well as supplying energy to more than
220,000 customers.
Octopus Healthcare Adviser Ltd is authorised and regulated by
the Financial Conduct Authority.
The Company's website address is www.medicxfund.com. Neither the
contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other
website), nor the contents of any website accessible from
hyperlinks within this announcement, are incorporated into, or
forms part of, this announcement.
The Company's Legal Entity Identifier is
2138008POF35FTNFCB25.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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