Primary Health Properties PLC Secured Note Issue (0890A)
March 21 2017 - 7:18AM
UK Regulatory
TIDMPHP
RNS Number : 0890A
Primary Health Properties PLC
21 March 2017
21 March 2017
Primary Health Properties PLC
GBP100 million Secured Note Issue
Primary Health Properties PLC ("PHP" or the "Company"), the UK's
leading investor in modern primary healthcare facilities, today
announces a wholly owned subsidiary has issued new senior secured
ten year notes for a total of GBP100 million. The notes will carry
a fixed coupon of 2.83% and are guaranteed by the Company.
The notes have been issued to funds managed by UK institutional
investors and represent PHP's first transaction in the private
placement market. The issue once again demonstrates the Company's
ability to source funding from a broad range of alternative
providers at attractive rates. PHP was advised by IDCM Limited.
The proceeds of the issue will be partially applied to refinance
PHP's existing "club" facility with The Royal Bank of Scotland plc
("RBS") and Santander Corporate Banking. The GBP115 million club
facility, that otherwise matured in August 2017, will be replaced
by a new GBP50 million bi-lateral term loan with RBS, which will be
fully drawn on completion with a reduced total cost of borrowing.
The new RBS facility will be for an initial four year term and will
be extendable for a fifth year with the agreement of RBS. PHP
retains an option to increase the loan facility to a maximum total
of GBP100 million also with the agreement of RBS.
The Company has a strong pipeline of acquisition opportunities
both in the UK and Republic of Ireland. The balance of the proceeds
of the note issue will be used to fund further acquisitions from
this pipeline.
These debt transactions extend the average weighted maturity of
PHPs debt facilities to 6.1 years (31 December 2016: 5.1
years).
This announcement contains inside information for immediate
release.
Harry Hyman, Managing Director of Primary Health Properties,
commented:
"Today's announcement demonstrates our continued ability to
secure long-term funding from a variety of sources. We will use the
funds to progress our long term strategy of growing PHP's portfolio
through the acquisition of well-priced, strategic assets that will
provide strong income returns and the potential for asset growth
whilst maintaining a prudent level of gearing."
More information on Primary Health Properties PLC can be found
on www.phpgroup.co.uk
The person responsible for arranging release of this
announcement on behalf of the Company is Paul Wright for Nexus
Management Services, Company Secretary.
Further details:
Harry Hyman Phil Holland
Managing Director Finance Director
Tel: +44 (0) 20 7104
Richard Howell, 5599
Finance Director, Designate
Tel: +44 (0) 20 7451
7050
David Rydell / Elizabeth
Snow
Eve Kirmatzis
Bell Pottinger
T +44 (0) 20 3772 2582
This information is provided by RNS
The company news service from the London Stock Exchange
END
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