LXI REIT PLC Loans - Interest rate reduced & maturity extended (9721D)
November 03 2020 - 1:00AM
UK Regulatory
TIDMLXI
RNS Number : 9721D
LXI REIT PLC
03 November 2020
3 November 2020
LXi REIT plc
(the "Company" or the "Group")
REDUCTION IN INTEREST RATE AND EXTENSION OF MATURITY TO LOAN
FACILITIES
The Board of LXi REIT plc (ticker: LXI), th e specialist
inflation-protected very long income REIT, is pleased to announce
that the Group has made changes to its three term loan facilities
with Scottish Widows (the "Loans"), that will reduce the interest
rate payable and extend the maturity date.
The Loans will now carry a reduced all-in fixed interest rate to
maturity of 2.85% per annum, which is expected to generate a cash
saving for the Group of approximately GBP2 million over the
extended loan term, which has increased to 13 years for each
facility (expiry 12 December 2033).
As part of the agreement the existing security pools have been
cross collateralised to provide further diversification to the
lender and enhanced operational flexibility to the Group.
The Loans previously carried a weighted average all-in fixed
rate of 2.94% per annum and had a weighted average term to maturity
of 10 years.
The level of borrowings under the Loans (GBP170 million) and all
other commercial terms remain as before. No arrangement fee has
been charged and no break cost will be incurred.
Freddie Brooks, CFO of LXI REIT Advisors, commented:
"We are pleased to have extended the maturity date and reduced
the interest rate of our long-term loans. The changes will provide
enhanced visibility, operational flexibility and free cash flows
for the Group. We have developed a strong relationship with
Scottish Widows and these changes further underline their support
for our secure, long dated and well diversified portfolio."
FOR FURTHER INFORMATION, PLEASE CONTACT:
LXI REIT Advisors Limited Via Maitland/AMO
Simon Lee (Partner, Fund Manager)
John White (Partner, Fund Manager)
Peel Hunt LLP Tel: 020 7418 8900
Luke Simpson/Liz Yong
----------------------------------------
J efferies International Tel: 020 7029 8000
Ed Matthews/Tom Yeadon
----------------------------------------
Maitland/AMO (Communications Adviser) Tel: 020 7379 5151
James Benjamin Email: lxireit-maitland@maitland.co.uk
----------------------------------------
The Company's LEI is: 2138008YZGXOKAXQVI45
NOTES:
LXI REIT plc invests in UK commercial property assets let, or
pre-let, on very long (typically 20 to 30 years to expiry or first
break), inflation-linked leases to a wide range of strong tenant
covenants across a diverse range of robust property sectors.
The Company may invest in fixed-price forward funded
developments, provided they are pre-let to an acceptable tenant and
full planning permission is in place. The Company will not
undertake any direct development activity nor assume direct
development risk.
The Company is targeting a quarterly dividend of 1.35 pence per
ordinary share for the quarter that commenced on 1 July 2020* and a
quarterly dividend of 1.44 pence per ordinary share for the quarter
that commenced on 1 October 2020.*
The Company, a real estate investment trust ( " REIT " )
incorporated in England and Wales, is listed on the premium listing
segment of the Official List of the UK Listing Authority and was
admitted to trading on the main market for listed securities of the
London Stock Exchange in February 2017.
The Company is a constituent of the FTSE 250, EPRA/NAREIT and
MSCI indices.
Further information on the Company is available at
www.lxireit.com
* These are guidance levels or targets only and not a profit
forecast and there can be no assurance that they will be met.
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END
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