New Loan Facility

RNS Number : 6355R

Impact Healthcare REIT PLC

18 June 2018

 

18 June 2018

Impact Healthcare REIT plc

(the "Company" and with its subsidiaries, the "Group")

NEW LOAN FACILITY

The Board of Directors of Impact Healthcare REIT plc (ticker: IHR), the real estate investment trust which gives investors exposure to a diversified portfolio of UK healthcare real estate assets, in particular care homes, is pleased to announce that the Group has signed a new £50 million five year loan facility with Metro Bank PLC (the "Loan Facility"). The Loan Facility has two elements: an interest only term loan of £25 million (the "Term Loan") and a revolving credit facility of £25 million (the "RCF"). This is the Group's first debt facility.

The Loan Facility has a margin of 265 basis points over Metro Bank PLC's published Base Lending Rate. The five year Term Loan is repayable without penalty after two years, and with a 1% penalty if prepaid within the first two years. Amounts drawn under the RCF can be repaid at any time without penalty. £25 million of the Term Loan and £5 million of the RCF are secured over a portfolio of 30 care homes held in a wholly-owned Group company.

If the Loan Facility is fully drawn, the Group's loan to value ("LTV") would be 20% based on the Group's net assets at 31 March 2018. The Group's maximum LTV is 35% of gross asset value of the Group as a whole.

The Loan Facility will help the Group to manage its capital structure in line with its investment policy in a flexible manner and will support the Group with its future growth plans.

The net proceeds of the £32.6 million equity fundraising in November 2017 are fully invested or committed.

The Group is currently putting in place interest rate options to hedge its exposure.

This announcement contains inside information.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Impact Health Partners LLP Mahesh Patel Andrew Cowley	via Newgate Communications
Winterflood Securities Limited Joe Winkley Neil Langford	Tel: [phone]
Newgate Communications (PR Adviser) James Benjamin Anna Geffert Patrick Hanrahan	Tel: [phone] Email: [e-mail]

The Company's LEI is 213800AX3FHPMJL4IJ53.

Further information on Impact Healthcare REIT is available at www.impactreit.uk

NOTES:

The Group is a real estate investment trust ("REIT") which aims to provide shareholders with an attractive return, principally in the form of quarterly income distributions and with the potential for capital and income growth, through exposure to a diversified portfolio of healthcare real estate opportunities, in particular residential care homes. The Group's investment policy is to acquire, renovate, extend and redevelop high quality healthcare real estate assets in the UK and lease those assets primarily to healthcare operators providing residential healthcare services under full repairing and insuring leases.

The Group has paid an aggregate dividend of 6.0 pence per share for the first 12 months from Admission, which equates to a yield of 6 per cent. per annum on the IPO Issue Price, paid in quarterly instalments.

The Group's Ordinary Shares were admitted to trading on the main market of the London Stock Exchange, Specialist Fund Segment, on 7 March 2017.

Rupert Barclay
Chairman
Impact Healthcare REIT plc
7 Berkeley Street, London W1J 8DW

 

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