New Debt Facility

RNS Number : 3729P

Target Healthcare REIT Limited

31 August 2017

 

Target Healthcare REIT Limited

New Debt Facility

Target Healthcare REIT Limited and its subsidiaries (the "Group") is pleased to announce it has entered into a new five year £40 million committed term loan facility with First Commercial Bank, Limited (the "FCB Facility").

The FCB Facility can be drawn down flexibly over the course of the next 24 months with an initial drawdown of £5m to take place immediately. The facility has an initial margin of 175 basis points over 3 month LIBOR which is currently equivalent to an interest cost of 2.03% per annum and an all-in cost (inclusive of arrangement expenses) of 2.39% per annum. The Group intends to hedge a significant part of its interest rate exposure on the facility once it has drawn sufficient funds.

The facility agreement contains a typical security package including loan to value and interest cover ratio covenants which are broadly in-line with the Group's existing debt arrangements.

The Group's existing £50 million committed term loan and revolving credit facility with The Royal Bank of Scotland plc, which is repayable in 2021, remains in place. The FCB Facility will therefore provide further debt diversification for the Group as well as additional funds to allow the Group to execute its current investment opportunities efficiently.

Gordon Bland, Finance Director of Target Advisers, said:

"We are delighted to secure this new facility from First Commercial Bank, Limited. The Group continues to maintain its conservative approach to gearing and this facility allows us to combine balance sheet efficiency with operational flexibility as we progress the attractive investment opportunities we are currently seeing in the market."

Target Healthcare legal entity identifier:             2138008VQQ5Y9QXMX749

Enquiries:

Kenneth MacKenzie, Gordon Bland
Target Advisers
01786 845 912

Mark Young, Neil Winward, Tom Yeadon

Stifel Nicolaus Europe Limited

020 7710 7600

Martin Cassels
Maitland Administration Services (Scotland) Limited
0131 550 3760

Fiona Harris/Sam Emery

Quill PR

020 7466 5058 / 020 7466 5056

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations ((EU) No. 596/2014). Upon the publication of this announcement via Regulatory Information Service this inside information is now considered to be in the public domain.

 

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