New Revolving Credit Facility for £70 Million

RNS Number : 9050W

Empiric Student Property PLC

20 November 2017

 

20 November 2017

Empiric Student Property plc

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

New Revolving Credit Facility for £70 million

The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of modern, premium student accommodation across the UK, is pleased to announce that the Company has agreed a new revolving credit facility (the "Facility") of £70 million with Lloyds Bank Commercial Banking ("Lloyds Bank"). The Facility is secured against a portfolio of operating assets, held as a lending group, through a wholly owned Group subsidiary.

The Facility has a margin of 1.75% per annum above three-month LIBOR and is repayable three years from the date of agreement but can be extended by 12 months, by mutual consent, on each of the first and second anniversaries to a total of five years.

The Facility can be used for general corporate purposes including the financing of the purchase of properties by any Group company to be operated as student accommodation or in refinancing the costs of acquisition of such properties.

In accordance with its investment policy, the Company will maintain a conservative level of aggregate borrowings, targeting a level of 35 per cent. but no more than 40 per cent. of the gross asset value of the Company (calculated at the time of draw down).

Commenting on the Facility, Andrew Wheldon, Director of Lloyds Bank Commercial Real Estate said:

"Empiric has an established track record in the acquisition, development and management of premium student accommodation in the UK. We are pleased to support Empiric with this Facility which is secured against premium assets in central locations in prime UK university cities and towns and will support the management team with its future growth plans."

Lynne Fennah, Chief Financial Officer of Empiric Student Property plc, commented:

"This new Facility provides the Company with further flexibility in financing future acquisitions, within our target loan-to-value parameters.  This is a new debt funding relationship and we look forward to working with Lloyds Bank in the future."

For further information on the Company, please contact:

Empiric Student Property plc	(via Newgate below)
Paul Hadaway (Chief Executive)
Lynne Fennah (Chief Financial Officer)
Tim Attlee (Chief Investment Officer)
Akur Limited (Joint Financial Adviser)	Tel: [phone]
Tom Frost
Anthony Richardson
Siobhan Sergeant
Jefferies International Limited (Joint Financial Adviser and Broker)	Tel: [phone]
Gary Gould
Stuart Klein
Newgate (PR Adviser)	Tel: [phone]
James Benjamin	Em: [e-mail]
Anna Geffert
Lydia Thompson

The Company's LEI is 213800FPF38IBPRFPU87.

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

Further information on Empiric can be found on the Company's website at www.empiric.co.uk.

Notes:

Empiric Student Property plc is a leading provider and operator of modern, direct-let, nominated or leased student accommodation across the UK. Investing in both operating and development assets, Empiric is a multi-niche student property company focused on, (i) providing good quality first year accommodation managed through its Hello Student® operating platform in relationships with universities, (ii) offering a variety of second and third year purpose built accommodation options for individual students and those wanting a group living environment, and (iii) continuing to expand the Group's existing premium, studio-led accommodation portfolio which is attractive to international and postgraduate students.

The Company, an internally managed real estate investment trust ("REIT") incorporated in England and Wales, listed on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in June 2014.

 

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