F&C UK Real Est. Inv. Completion of Group Refinancing

 
TIDMFCRE 
 
F&C UK REAL ESTATE INVESTMENTS LIMITED 
 
13 NOVEMBER 2015 
 
COMPLETION OF GROUP REFINANCING 
 
Further to the announcements made by the Company on 29 September and 10 
November 2015, the Board is pleased to announce that earlier today IRP Holdings 
Limited (a wholly owned subsidiary of the Company) drew down in full the GBP90 
million available under the 11 year term loan facility agreement with Canada 
Life Investments.  In addition, IPT Property Holdings Limited (a wholly owned 
subsidiary of the Company) drew down in full the GBP20 million available under 
the 5 year revolving credit facility with Barclays Bank plc. 
 
As previously announced, the New Facilities were provided to the Group for the 
purpose of refinancing the GBP102 million term loan facility provided by Lloyds 
Bank plc, which was due for repayment in January 2017 (the "Existing 
Facility"). The balance of the New Facilities will be used for general working 
capital purposes. 
 
The Board believes that it is in the interests of the Group to repay the 
Existing Facility early to ensure that the Group has certainty of available 
funds in advance of the fixed repayment date in January 2017 and so that the 
Group can take advantage of the current availability of long term borrowings at 
attractive rates of interest.  There is no early repayment penalty in respect 
of the Existing Facility but the Group has terminated its existing interest 
rate hedging arrangements entered into in connection with the Existing 
Facility. The cost of breaking the relevant interest rate swap (which had 
previously been accounted for as a liability, net of accrued interest of GBP5.7 
million as at 30 September 2015) was GBP5.5 million.  No further swap is required 
given the fixed nature of the principal loan with Canada Life Investments. 
 
Following the refinancing, the Group have available borrowings of GBP110 million 
which have been drawn down in full. The Group's total current borrowings of GBP 
110 million represents 31.6 per cent. of the total assets of the Group as at 30 
September 2015. The weighted average interest rate (including amortisation of 
refinancing costs) on the Group's total current borrowings is 3.3 per cent. The 
weighted average interest rate on the Group's total borrowings has therefore 
fallen by 2.6 per cent. following the refinancing. 
 
All enquiries to: 
 
Ian McBryde 
Scott Macrae 
F&C Investment Business Limited 
Tel: [phone] 
 
The Company Secretary 
Northern Trust International Fund Administration Services (Guernsey) Limited 
Trafalgar Court 
Les Banques 
St Peter Port 
Guernsey GY1 3QL 
Tel:  [phone] 
 
 
 
 
END 
 

(END) Dow Jones Newswires

November 13, 2015 08:33 ET (13:33 GMT)