New Fixed Rate Term Loan Facility of £40 million
14th December 2016
The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of modern, premium student accommodation across the UK, is pleased to announce that the Group has agreed a new £40 million extension facility to its existing £80 million fixed rate term loan facility (together the "Amended and Restated Facility") arranged by Barings Real Estate Advisers, a member of the MassMutual Financial Group. The Amended and Restated Facility is now secured against a portfolio of 25 operating assets, held as a lending group through a wholly owned subsidiary, Empiric Investments (Four) Limited.
The new £40 million facility is expected to be drawn down in full on 16 December 2016. The Amended and Restated Facility is repayable in April 2028. The new £40 million extension facility has a fixed all in rate of 3.64 per cent., interest only, throughout the term. This rate is fixed up to a loan to value ratio of 55 per cent. This provides a fixed all in blended rate of 3.37 per cent. for the Amended and Restated Facility.
The amounts drawn down under the Amended and Restated Facility will be segregated and non-recourse to the Company.
The new £40 million facility will be used to fund further investments in both operating assets and forward funded projects.
Following draw down of the new £40 million facility, the estimated loan to value ratio for the Company will be approximately 30.5 per cent. (30 June 2016: 22.7 per cent.). In accordance with the Company's investment policy, the Company will maintain a conservative level of aggregate borrowings, targeting a level of 35 per cent. but no more than 40 per cent. of the gross asset value of the Company (calculated at the time of draw down).
Strategic advice on the structure and assistance in arranging the debt was provided by JCRA Group.
Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:
"This extended long term facility helps the Group to maintain our low overall cost of borrowing and further extend our average unexpired loan term. The Amended and Restated Facility also provides further debt resource to help support our growth plans and business model. We are pleased to have built on and extended our excellent working relationship with Barings, one of the largest global real estate investment managers and debt providers."
Questions? Get in touch using the contact details below.
Questions? Get in touch.
Empiric Head Office
Empiric Student Property plc
1st Floor, 72 Borough High Street London, SE1 1XF
+44 (0)20 3828 8700
+44 (0)20 7379 5151
Stuart Klein/Tom Yeadon
Jefferies International Limited
020 7029 8000
Charlie Foster / Marcus Jackson
RBC Europe Limited (trading as RBC Capital Markets)
020 7653 4000