£50 million private placement of loan notes

RNS Number : 0815M

The MedicX Fund Limited

01 May 2015

 

For immediate release                                                                                    

1 May 2015

MedicX Fund Limited

("MedicX Fund", "the Fund" or "the Company")

£50 million private placement of loan notes

MedicX Fund Limited (LSE: MXF), the specialist primary care infrastructure investor in modern purpose-built primary healthcare properties in the United Kingdom, announces that it has raised £50 million through a private placement of loan notes bought by Standard Life Investments Limited, a new institutional investor in the Fund. Independent Debt Capital Markets acted as arranger to the transaction. The loan notes have a duration of thirteen years and five months maturing on 30 September 2028, with no amortisation and the principal value repayable on maturity.  The all-in interest rate on the notes is fixed for their term at 3.838%.

The funds will be drawn in two phases, with £25 million being drawn today, and the remaining £25 million in September 2015. The funds will be secured against certain properties and the proceeds from the issue of the loan notes will be invested in accordance with the Company's investment policy.

Including this new facility the average all-in fixed rate of debt for the Fund is 4.42% with an average unexpired term of 14 years. Assuming the funds were fully drawn immediately with the proceeds invested in completion of existing properties under construction or purchase of new properties, adjusted gearing (the ratio of total debt to total assets in each case net of cash and cash equivalents) would be expected to be approximately 54.1%.

David Staples, Chairman said, "We are delighted to announce our second successful private placement issue of loan notes. The terms of the loan notes compare competitively with facilities currently available from bank lenders. This additional debt further diversifies our lender base and enables the Fund to commit to new investments, taking advantage of our pipeline of acquisition opportunities whilst locking into low fixed interest rates for the long term consistent with our successful strategy".

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For further information please contact:

MedicX Fund                                                                   [phone]

David Staples, Chairman

Octopus Healthcare Group                                               [phone]

Mike Adams, Chief Executive Officer

Mark Osmond, Chief Financial Officer

Buchanan                                                                        [phone]

Charles Ryland/Sophie McNulty

Information on MedicX Fund Limited

MedicX Fund Limited ("MXF", the "Fund" or the "Company", or together with its subsidiaries, the "Group") is the specialist primary care infrastructure investor in modern, purpose-built primary healthcare properties in the United Kingdom, listed on the London Stock Exchange, with a portfolio comprising 141 properties.

The Investment Adviser to the Company is Octopus Healthcare Adviser Ltd, which is authorised and regulated by the Financial Conduct Authority and is a subsidiary of the Octopus Healthcare Group. The Octopus Healthcare Group is a specialist investor, developer and manager of healthcare properties with 37 people operating across the UK.

The Company's website address is www.medicxfund.com.  Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website), nor the contents of any website accessible from hyperlinks within this announcement, are incorporated into, or forms part of, this announcement.

 

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