Extension of Debt Facility

abrdn Property Income Trust Limited
(an authorised closed-ended investment company incorporated in Guernsey with registration number 41352)

LEI Number: 549300HHFBWZRKC7RW84

12 October 2022
 

EXTENSION OF DEBT FACILITY

abrdn Property Income Trust (API) has completed an extension to its borrowing arrangements with the Royal Bank of Scotland International (RBSI).

API currently has two facilities with RBSI, a £110m term loan and a £55m Revolving Credit Facility (RCF) (of which £17m is drawn currently, but which will shortly be repaid from the proceeds of the recently completed sale of the Rainham industrial investment). Both facilities are due to expire in March 2023. The LTV as at 30 June 2022 was 21.05%.

An extension has been agreed for a three year tenor with a term loan of £85m and an RCF of £80m. The new facility will start in March 2023 with a margin of 150bps over Sonia for both the term loan and the RCF. It is intended that the term loan will be fully drawn on commencement. The RCF will be used to provide liquidity for the Company and the Board intends to manage the level of debt to retain an LTV in the range of 20 – 30%.

The Company has entered into a forward interest rate Swap on the full amount of the term loan. The RCF will have a floating rate based on the prevailing Sonia rate. The cost of the Swap is 5.47% (giving an all-in rate of 6.97% on the £85m borrowed under the term loan).

Jason Baggaley, Fund Manager of API commented “We are delighted to have extended our relationship with RBSI, who we have a longstanding relationship with. The margin of 150bps is very competitive, and reflects that relationship along with the quality of the portfolio. The impact of the elevated SWAP rates is disappointing, and we have reduced the size of the term loan as a result. “
 

All Enquiries:

Jason Baggaley – Real Estate Fund Manager, abrdn
Tel:  [phone] or [e-mail]

Mark Blyth – Real Estate Deputy Fund Manager, abrdn
Tel: [phone] or [e-mail]