New Debt Facility

RNS Number : 4896K

Target Healthcare REIT Limited

25 June 2014

 



Target Healthcare REIT Limited (the "Company")

RNS Announcement

25 June 2014

New Debt Facility

The Board is pleased to announce that on 23 June 2014 THR Number One PLC, a wholly owned subsidiary of the Company, entered into a new five year £30 million committed term loan and revolving credit facility with The Royal Bank of Scotland plc. Seven of the Company's properties have been transferred to THR Number One PLC and £12.26m of the facility has been drawn down secured over the seven properties.  

Interest is payable under the facility at a rate equal to 3 month LIBOR plus a margin of 2.0% per annum and it is the Board's intention to fix a proportion of the interest through a forward interest rate swap within the next 90 days.

The facility agreement includes terms which are typical for a facility of this nature; including loan to value and interest cover ratio covenants.

Further drawdowns will be made against the facility to coincide with completion of transactions currently in non-binding advanced legal negotiations.

In the event that the full amount is drawn down under the debt facility the Group's gearing is expected to be approximately 25 per cent. of the Group's gross assets. Although this is within the Group's stated gearing limit of 35 per cent. of gross assets, it remains the Board's intention that as the proceeds of further capital raisings are invested, any further borrowings will not exceed 20 per cent. of the Group's gross assets at the time of drawdown.

All enquiries:

Kenneth MacKenzie Target Advisers LLP	01786 406 581
Martin Cassels R&H Fund Services Limited	0131 524 6140
Fiona Harris / Sam Emery Quill PR	020 7466 5058 / 020 7466 5056

 

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