Completion of Refinancing

LXI REIT PLC
25 April 2023
 

Text Description automatically generated with medium confidence

 

 

 

25 April 2023

LXi REIT plc

(the "Company", the "Group" or "LXi")

COMPLETION OF REFINANCING

The Board of LXI REIT plc, the specialist inflation-protected very long income REIT, reports that further to its announcements on 6 March and 13 April 2023, the Company's refinancing has now completed.

 

The Company has drawn the new facilities and a summary of the outstanding loans are listed below, resulting in a 6-year weighted average term to maturity (excluding extension options) and a weighted average capped all-in cost of debt of 4.7% (further detail below).

 

The club of lenders of the Company's new syndicate bank facility are Lloyds Bank plc, Barclays Bank plc, Santander Corporate and Investment Banking and RBS International, London branch. Rothschild & Co advised the Company on the syndicate bank facility.

 

The lender of the Company's new long-term loan facility is Canada Life Asset Management.

 

The table below is a summary of the Company's new and remaining debt facilities:

 

Facility

Expiry

Term to maturity

Interest type

Quantum (£m)

Capped

all-in rate

Long-term loan facility

Dec-2033

11-year

Fixed

175.0

2.7%

Leisure facility

Dec-2024

2-year

Capped

  60.0

4.6%

Healthcare facility 1

Sep-2025

2-year

Fixed

  63.1

4.3%

Healthcare facility 2

Oct-2025

3-year

Fixed

292.5

5.3%

Long-term loan facility (new)

Mar-2039

16-year

Fixed

148.0

5.8%

Syndicate term loan A

Jan-2028

5-year

Capped

115.0

4.3%

Syndicate term loan B

Jan-2026

3-year

Capped

250.0

4.2%

Syndicate RCF

Jan-2028

5-year

Capped1

 200.0

5.8%1

 

 

6-year

 

1,298.6

4.7%

 

The Board is also pleased to announce that the Company is expecting to receive an Investment Grade credit rating from Standard & Poor's, which will be published on their website shortly.

 

Freddie Brooks, CFO, LXi REIT Advisors, commented:

 

"We are pleased to have completed the Company's comprehensive refinancing programme, delivering operational flexibility, further diversifying our sources of capital and underpinning our long-term progressive dividend policy. The new facilities represent a positive outcome for the Company, despite the challenging economic backdrop, that is testament to the quality of our long-income portfolio."

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

LXI REIT Advisors Limited

Simon Lee (Partner, Fund Manager)

John White (Partner, Fund Manager)

Freddie Brooks (CFO)

Via H/Advisors Maitland



Barclays

Bronson Albery / Tom Macdonald / Dion Miceli

020 7623 2323



Jefferies International

Tom Yeadon / Ed Matthews / Rishi Bhuchar

020 7029 8000

 


H/Advisors Maitland (Communications Advisor)

James Benjamin / Rachel Cohen

07747 113 930 / 020 7379 5151

lxireit-maitland@h-advisors.global

 

The Company's LEI is: 2138008YZGXOKAXQVI45

 

NOTES

LXI REIT plc invests in commercial property assets predominantly in the UK, let, or pre-let, on long (typically 20 to 30 years to expiry or first break), inflation-linked leases to a wide range of strong tenant covenants across a diverse range of robust property sectors.

 

The Company may invest in fixed-price forward funded developments, provided they are pre-let to an acceptable tenant and full planning permission is in place. The Company will not undertake any direct development activity nor assume direct development risk.

 

The Company is targeting a dividend of 6.6 pence per ordinary share for the year which commenced on 1 April 20232.

 

The Company, a real estate investment trust ("REIT") incorporated in England and Wales, is listed on the premium listing segment of the Official List of the UK Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in February 2017.

 

The Company is a constituent of the FTSE 250, EPRA/NAREIT, MSCI and STOXX Europe 600 indices.

 

Further information on the Company is available at www.lxireit.com

1    At the date of this announcement, the Company has capped £400 million of the £565 million total facility at a strike rate of 2.0%. The Company intends to hedge at least a further £150 million notional in due course. The capped all-in rate in the table above assumes the unhedged element is capped or fixed at the 5-year SONIA swap rate of 4.0318%, being the at the money rate at market close on 24 April 2023

2    This is a target and not profit forecast

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 

Companies

LXI Reit (LXI)
UK 100

Latest directors dealings