Picton Prop Inc Ltd Early Debt Repayment

 
TIDMPCTN 
 
27 June 2018 
 
                        PICTON PROPERTY INCOME LIMITED 
                   ("Picton", the "Company" or the "Group") 
 
                           LEI: 213800RYE59K9CKR4497 
 
 
                             Early Debt Repayment 
 
 
Picton has entered into an agreement with one of its principal lenders to 
reduce the amount of debt outstanding by GBP33.7 million, effective 20 July 2018. 
The current interest rate on the debt being repaid is 4.08% with a maturity in 
July 2022. 
 
The repayment will be funded by utilising GBP23 million of existing cash 
resources, generated from recent asset disposals, and by using its revolving 
credit facility ("RCF") which has a current interest rate of 2.4%. 
 
The debt repayment is expected to reduce finance costs by GBP1 million per annum 
in the short term, which will reduce further if the Company subsequently repays 
its RCF from additional asset sales.  The proforma Group LTV following the 
repayment will be 26% and this could reduce to approximately 22% were the RCF 
to be fully repaid. 
 
Picton will incur a one off repayment fee of approximately GBP3.1 million to 
effect the changes, dependant on gilt yield movements between now and 20 July 
2018. 
 
As part of the transaction, Picton has secured a number of other amendments to 
the loan documentation which inter alia provide increased operational 
flexibility, both in terms of how the loan portfolio is constructed and also by 
relaxing criteria that currently ring fence proceeds following asset disposals. 
 
Michael Morris Chief Executive of Picton Capital Limited, commented: 
"This repayment marks another positive step in our ongoing strategy to optimise 
Picton's debt position through the property cycle. We have also secured other 
important changes, which will increase our operational flexibility ahead of our 
planned UK REIT conversion later this year." 
 
 
 
 
For further information please contact: 
 
Tavistock 
Jeremy Carey/James Verstringhe, 020 7920 3150, 
[e-mail] 
 
Picton Capital Limited 
Michael Morris, 020 7011 9980, [e-mail] 
 
Note to Editors 
 
Picton is a property investment company established in 2005.  It owns and 
actively manages a GBP684 million diversified UK commercial portfolio, invested 
across 51 assets and with around 360 occupiers (as at 31 March 2018). Through 
an occupier focused, opportunity led approach to asset management, Picton aims 
to be one of the consistently best performing diversified UK focused property 
companies listed on the main market of the London Stock Exchange. 
 
For more information please visit: www.picton.co.uk 
 
                                     ENDS 
 
 
 
END 
 

(END) Dow Jones Newswires

June 27, 2018 02:00 ET (06:00 GMT)