Debt Repayment

RNS Number : 8083F

ING UK Real Estate Income Trust Ltd

20 January 2010

 



ING UK Real Estate Income Trust Limited

20 January 2010

Debt Repayment through Opportunistic Purchase and Cancellation of Securitised Notes

ING UK Real Estate Income Trust announces that it has agreed to repay GBP 15 million of debt through the purchase and cancellation of loan notes at a discount to nominal value in two separate transactions.

Upon purchase and cancellation, which will occur simultaneously on 29 January, the Company will reduce its outstanding loan balance to GBP 175 million. The loan notes, which hold an AAA rating, will be acquired for a total consideration of GBP 14.25 million, representing a 5% discount to nominal value. The Company will also prepay the corresponding SWAP amount, which is currently marked to market.

The transaction will result in a one off gain to the Net Asset Value expected to be in the order of GBP 680,000, and will also save over GBP 719,000 per annum in interest charges.

Michael Morris, Fund Manager commented:

"This is an opportunistic purchase, enabling us to enhance both the underlying NAV and income account, whilst derisking the overall portfolio by maintaining the current LTV ratio and improving the interest cover position.  We believe this is attractive for our shareholders, especially bearing in mind the current market dynamics and the limited options for this 'ring fenced' capital. This transaction again shows our proactive approach to debt management whilst at the same time enhancing our covered dividend position."

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For further information:

The Company secretary

Northern Trust International Fund Administration Services (Guernsey) Limited

Trafalgar Court

Les Banques

St Peter Port

Guernsey

GY1 3QL

Tel : [phone]

Fax : [phone]

ING Real Estate Investment Management (UK) Limited

Helen Stott, 020 7767 5648, [e-mail] 

Financial Dynamics

Dido Laurimore/Lauence Jones, 020 7831 3113

 

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