Reorganisation of loan notes

RNS Number : 7027T

ING UK Real Estate Income Trust Ltd

01 October 2010

 



ING UK Real Estate Income Trust Limited

1 October 2010

ING UK Real Estate Income Trust announces reorganisation of loan notes arrangements

ING UK Real Estate Income Trust Limited ("IRET" / "the Company"), a Guernsey registered closed-ended investment company today announces that it has reorganised the loan stock inherited as part of the Rugby Estates Investment Trust Plc ("Rugby REIT") acquisition thereby allowing a move towards a wind up of the associated entities in due course.

The steps undertaken are as follows:

·      As at 30 September 2010, the Company has reduced the debt outstanding under such stock to GBP 2.6 million from GBP 3.3 million as at 30 June 2010.  

·      It has issued new unsecured loan notes (Loan Notes) in the total amount of GBP 2.35  million to certain holders of existing loan notes (Rugby Notes) in IRET Securities Investments Limited (formerly Rugby Estates Investment Trust plc), in exchange for existing Rugby Notes to the same value, which the Company intends to redeem.  

·      The Loan Notes have been issued on the same terms as the Rugby Notes, save that certain of the Rugby Notes were subject to a bank guarantee. The Loan Notes are not guaranteed and mature on 30 September 2012.  There are two forms of Loan Notes of which GBP 2.16 million pay a rate of interest at 0.5% above the LIBOR rate and a further GBP 0.2 million currently pays a nil rate of interest (calculated at 0.75% below the Royal Bank of Scotland Base Rate).

·      The remaining Rugby Notes amounting to GBP 0.24 million will be repaid in due course following an accelerated redemption and repayment undertaken by IRET.

The transaction has been undertaken to secure financially attractive funding for the Company and will support a move towards the completion of the structural reorganisation required following the corporate acquisition of Rugby REIT earlier this year.

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/Laurence Jones, 020 7831 3113

 

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