Refinancing

RNS Number : 6311A

Primary Health Properties PLC

02 January 2018

 

2 January 2018

Primary Health Properties PLC

Renewed and new credit facilities

Primary Health Properties PLC ("PHP" or the "Company"), the UK's leading investor in modern primary healthcare facilities, today announces that it has entered into a renewal and extension of a facility with Aviva and a new facility with Lloyds Bank PLC.

Aviva have agreed to renew a £75m secured loan facility for just under 11 years to November 2028 at a fixed interest of 3.10 per cent per annum.  The existing Aviva facility, due to mature in November 2018, bears interest at a fixed 4.00 per cent and the renewal will result in interest savings of £675,000 per annum to the Company. 

The new £30m secured revolving credit facility with Lloyds Bank plc, is for an initial three year period, with the option to extend by two further years, at rates ranging from 155bp to 175bps over LIBOR depending on utilisation.  The Lloyds facility may be drawn in either Sterling or Euros at PHP's option.  The facility will be used to fund further acquisitions from the Company's strong pipeline of acquisition opportunities both in the UK and Republic of Ireland.

These debt transactions extend the average weighted maturity of PHPs debt facilities to 6.3 years (30 June 2017: 5.8 years; 31 December 2016: 5.1 years) and the average cost of debt on its facilities drawn has been reduced to 4.09% (30 June 2017: 4.26%; 31 December 2016: 4.65%).

Harry Hyman, Managing Director of Primary Health Properties, commented:

"Today's announcement demonstrates our continued ability to secure long-term funding from a variety of sources. We will use the funds to progress our long term strategy of growing PHP's portfolio through the acquisition of well-priced, modern primary healthcare assets that will provide strong income returns and the potential for asset growth whilst maintaining a prudent level of gearing."

More information on Primary Health Properties PLC can be found on www.phpgroup.co.uk

Further details:

Harry Hyman Managing Director Tel: [phone]	Richard Howell, Finance Director Tel: [phone]
David Rydell Stephanie Watson Buchanan Communications T [phone]

 

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