27 June
2018
PICTON PROPERTY
INCOME LIMITED
(“Picton”, the “Company” or the “Group”)
LEI: 213800RYE59K9CKR4497
Early Debt Repayment
Picton has entered into an agreement with one of its principal
lenders to reduce the amount of debt outstanding by £33.7 million,
effective 20 July 2018. The current
interest rate on the debt being repaid is 4.08% with a maturity in
July 2022.
The repayment will be funded by utilising £23 million of
existing cash resources, generated from recent asset disposals, and
by using its revolving credit facility (“RCF”) which has a current
interest rate of 2.4%.
The debt repayment is expected to reduce finance costs by £1
million per annum in the short term, which will reduce further if
the Company subsequently repays its RCF from additional asset
sales. The proforma Group LTV following the repayment will be
26% and this could reduce to approximately 22% were the RCF to be
fully repaid.
Picton will incur a one off repayment fee of approximately £3.1
million to effect the changes, dependant on gilt yield movements
between now and 20 July 2018.
As part of the transaction, Picton has secured a number of other
amendments to the loan documentation which inter alia provide
increased operational flexibility, both in terms of how the loan
portfolio is constructed and also by relaxing criteria that
currently ring fence proceeds following asset disposals.
Michael Morris Chief
Executive of Picton Capital Limited, commented:
“This repayment marks another positive step in our ongoing strategy
to optimise Picton’s debt position through the property cycle. We
have also secured other important changes, which will increase our
operational flexibility ahead of our planned UK REIT conversion
later this year.”
For further information please
contact:
Tavistock
Jeremy Carey/James Verstringhe, 020 7920 3150,
james.verstringhe@tavistock.co.uk
Picton Capital Limited
Michael Morris, 020 7011 9980,
michael.morris@picton.co.uk
Note to Editors
Picton is a property investment company established in
2005. It owns and actively manages a £684 million diversified
UK commercial portfolio, invested across 51 assets and with around
360 occupiers (as at 31 March 2018).
Through an occupier focused, opportunity led approach to asset
management, Picton aims to be one of the consistently best
performing diversified UK focused property companies listed on the
main market of the London Stock Exchange.
For more information please visit: www.picton.co.uk
ENDS