Revolving Credit Facility

RNS Number : 3452D

Target Healthcare REIT Limited

30 January 2018

 

Target Healthcare REIT Limited

REVOLVING CREDIT FACILITY

Target Healthcare REIT Limited and its subsidiaries (the "Group") is pleased to announce it has secured a Revolving Credit Facility (the "RCF") of £40 million from HSBC Bank plc.

The RCF has a margin of 170 basis points over 3 month LIBOR which is currently equivalent to a total interest cost of 2.23% per annum and an all-in cost (inclusive of arrangement costs) of 2.81% per annum.

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 RCF has an initial three year term also provides an option of two one year extensions thereafter, subject to the consent of HSBC.

The Group's existing £50 million committed term loan and revolving credit facility with The Royal Bank of Scotland plc, which is repayable in September 2021, remains in place. The £40 million committed term loan facility with First Commercial Bank, Limited, which is repayable in August 2022 also remains in place.

The RCF will provide the Group with flexible capital to pursue investment opportunities as they arise while also allowing the Company to manage its capital structure in line with its investment policy. It remains the Board's intention that borrowings, over the medium term, should represent approximately 20 per cent. of the Group's gross assets.

Gordon Bland, Finance Director of Target Fund Managers Limited, said:

"We are delighted to secure this new facility from HSBC Bank plc for the Group. The fully revolving nature of the facility complements the Group's existing facilities, and provides operational flexibility as we assess a variety of attractive investment opportunities in the market. "

Target Healthcare legal entity identifier:             2138008VQQ5Y9QXMX749

Enquiries:

Kenneth MacKenzie, Gordon Bland
Target Fund Managers Limited
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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