RNS Number : 4664E
Lok'n Store Group PLC
31 May 2012
31 May 2012
Lok'nStore Group plc ("Lok'nStore" or "the Company")
Further interest rate fixing
Following the announcement on 28(th) May, Lok'nStore Group plc, one of the leading UK self-storage companies, is pleased to announce that it has fixed the interest rate on a further GBP10m of debt. The base rate of 1.15% gives an all in cost of 3.5% on this tranche of debt up to the expiration of the current banking facility in October 2016. The Company has done this by entering into an interest rate swap with Lloyds TSB Bank Plc.
The swap announced today means that Lok'nStore now has GBP20 million of fixed rate debt at an average rate of 3.525% out of its total debt of GBP28.5 million. (70.2% fixed). The remainder of GBP8.5 million is floating currently at an effective interest rate of 3.1% giving an overall current cost of debt at 3.34% per annum.
No arrangement fees were incurred.
Ray Davies, Finance Director commented,
"We feel that it is a good time to lock in to these historically low interest rates and have now taken the opportunity to fix the interest rates on over 70% of our debt at 3.525% over the next four and half years. This low rate protects our cash flow and helps secure the future of the business over the medium term."
For further information: Tel: 01252 521010
Andrew Jacobs, CEO
Ray Davies, Finance Director
FTI Consulting Tel: 020 7831 3113
Billy Clegg/ Oliver Winters/ Latika Shah
Panmure Gordon & Co Tel: 020 7459 3600
Dominic Morley/Fred Walsh
Notes to Editors
Lok'nStore is one of the leading self-storage companies in the in the fast growing UK market, offering flexible, low cost, accessible storage within a high quality portfolio of 22 self-storage centres and 4 document storage sites across South East England.
Lok'nStore has a resilient and proven business model and a track record of strong cash generation and consistent EBITDA growth. The Company is AIM listed and therefore suitable for relief from inheritance tax.
In October 2011 the Company announced the agreement of a new GBP40 million five year revolving banking facility with Lloyds TSB Bank plc as well as the renewal of three planning permissions for the Company's Reading, Southampton and Portsmouth sites. In December it received planning permission for a project in Maidenhead with Lidl that will be its first new storage centre since 2009.
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