REVOLVING CREDIT FACILITY

RNS Number : 9632K

Impact Healthcare REIT PLC

28 December 2022

 

The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than the Republic of Ireland or the Netherlands and then only to professional investors in such jurisdictions), Canada, Australia, Japan or the Republic of South Africa.

28 December 2022

Impact Healthcare REIT plc

("Impact" or the "Company" or, together with its subsidiaries, the "Group")

AGREED INCREASE IN SIZE, EXTENSION TO TERM AND REDUCTION IN MARGIN OF EXISTING REVOLVING CREDIT FACILITY WITH VIRGIN MONEY

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 successfully agreed an increase in the size, an extension to the term and a reduction in the margin of its existing revolving credit facility ("RCF") with Clydesdale Bank PLC trading as Virgin Money.

The revised facility has been increased from £25 million to £50 million and extends the maturity to December 2029, from March 2024. This increases the Group's weighted average term of debt from 6.2 to 6.9 years, providing financing aligned to the Group's long-term income stream and reduces the Group's exposure to debt expiring in the next three years to £15 million, being the remainder of the Metro Bank term debt.

The revised facility has an improved margin of 200 basis points over SONIA, down from 225 basis points on the original facility. 

Overall, this increases the Group's debt facilities from £216 million to £241 million, of which £142.3 million is currently drawn.  £100 million or 70% of the Group's drawn debt is currently hedged. LTV at 30 September 2022 was 21.4% and is currently 22.8% on a roll-forward basis¹.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Impact Health Partners LLP		Via H/Advisors Maitland
Mahesh Patel
Andrew Cowley
D avid Yaldron
Jefferies International Limited		[phone]
Tom Yeadon	[e-mail]
Neil Winward	[e-mail]
Winterflood Securities Limited		[phone]
Neil Langford	[e-mail]
Joe Winkley	[e-mail]
H/Advisors Maitland (Communications advisor)		[phone]
James Benjamin	[e-mail]
Alistair de Kare-Silver

The Company's LEI is 213800AX3FHPMJL4IJ53.

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

NOTES:

Impact Healthcare REIT plc acquires, renovates, extends and redevelops high quality healthcare real estate assets in the UK and lets these assets on long-term full repairing and insuring leases to high-quality established healthcare operators which offer good quality care, under leases which provide the Company with attractive levels of rent cover .

The Company aims to provide shareholders with an attractive sustainable return, principally in the form of quarterly income distributions and with the potential for capital and income growth, through exposure to a diversified and resilient portfolio of UK healthcare real estate assets, in particular care homes for the elderly.

The Company has a progressive dividend policy with a target to grow its annual aggregate dividend in line with the inflation-linked rental uplifts received by the Group under the terms of the rent review provisions contained in the Group's leases in the prior financial year.

On this basis, t he Company is targeting a dividend for the year to 31 December 2022 to increase by 2.0% to 6.54 pence per share ² .

The Group's Ordinary Shares were admitted to trading on the main market of the London Stock Exchange, premium segment, on 8 February 2019. The Company is a constituent of the FTSE EPRA/NAREIT index.

Neither the content of the Company's website, nor the content on any website accessible from hyperlinks on its website for any other website, is incorporated into, or forms part of, this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.

1  Current debt drawn divided by Gross Assets as at 30 September 2022 plus acquisitions at cost completed since 30 September 2022.

2  This is a target only and not a profit forecast. There can be no assurance that the target will be met and it should not be taken as an indicator of the Company's expected or actual results.

 

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