The MedicX Fund Limited £27.5 m private placement of loan notes (1785M)

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RNS Number : 1785M

The MedicX Fund Limited

26 July 2017

For immediate release

26 July 2017

MedicX Fund Limited

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

GBP27.5 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 and Republic of Ireland, announces that it has raised GBP27.5 million through a private placement of loan notes bought by a new institutional lender to the Fund. IDCM Limited acted as arranger to the transaction. The loan notes have a duration of eleven years and two months maturing on 30 September 2028, with no amortisation and the principal value repayable on maturity. The interest rate on the notes is fixed for their term at 3.00%.

The loans are 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.

This new facility, together with the full draw down of the Bank of Ireland development loan facility put in place in March 2017, results in a reduced average all-in fixed rate of debt for the Fund of 4.27% with an average unexpired term of 12.7 years. Assuming the funds were fully drawn immediately with the proceeds invested in the completion of existing properties under construction or the 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 53.7%.

David Staples, Chairman, said "We are delighted to announce our third private placement issue of loan notes at the lowest rate to date. The terms of the loan notes are competitive with facilities currently available from bank lenders. This additional debt by a new lender further diversifies our lender base and enables the Fund to commit to new investments in our pipeline of acquisition opportunities whilst being locked into low fixed interest rates for the long term, consistent with our ongoing funding 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

   Canaccord Genuity                                                          [phone] 

Andrew Zychowski/Helen Goldsmith

   Buchanan                                                                       [phone] 

Charles Ryland/Victoria Hayns

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 157 properties.

The Investment Adviser to the Company is Octopus Healthcare Adviser Ltd, which is part of the Octopus Healthcare group. Octopus Healthcare invests in and develops properties as well as creating partnerships to deliver innovative healthcare buildings to improve the health, wealth and wellbeing of the UK. It currently manages over GBP1 billion of healthcare investments across a number of platforms, with a focus on five core areas: GP surgeries, care homes, special education schools, retirement housing and private hospitals. Octopus Healthcare is part of the Octopus group, a fast-growing UK fund management business with leading positions in several specialist sectors including healthcare property, energy, property finance and smaller company investing. Octopus manages GBP6 billion of funds for more than 50,000 retail and institutional investors.

Octopus Healthcare Adviser Ltd is authorised and regulated by the Financial Conduct Authority.

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.

The Company's Legal Entity Identifier is 2138008POF35FTNFCB25.

This information is provided by RNS

The company news service from the London Stock Exchange

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July 26, 2017 09:10 ET (13:10 GMT)