Phoenix Spree Deutschland Limited Completion of new EUR240 million term loan (0466M)
September 12 2019 - 1:01AM
UK Regulatory
TIDMPSDL
RNS Number : 0466M
Phoenix Spree Deutschland Limited
12 September 2019
12 September 2019
Phoenix Spree Deutschland Limited
(The "Company" or "PSDL")
Completion of a new EUR240 million term loan on improved
terms
Improved capital structure provides more flexibility
Phoenix Spree Deutschland Limited (LSE: PSDL.LN), the UK listed
investment company specialising in Berlin residential real estate,
announces the completion of a new EUR240 million term loan facility
(the "New Facility").
The New Facility was agreed with Natixis Pfandbriefbank AG
("Natixis") and comprises of two tranches, one being for EUR190
million (the "Refinancing Facility") and the other for EUR50
million (the "Additional Facility").
The refinancing follows a strategic review of the Company's
liability structure with the aim of increasing the loan-to-value
("LTV") on the portfolio to a level closer to the stated goal in
the listing prospectus, while introducing more strategic
flexibility.
The New Facility was agreed with Natixis on 11 September 2019 by
Phoenix Spree Deutschland I Limited, Phoenix Spree Deutschland VII
Limited, and Phoenix Spree Property Fund Ltd. & Co. KG
(together the "Borrowers").
New Refinancing Facility of EUR190 million
The Refinancing Facility, which was partly used to refinance
existing indebtedness of c. EUR119 million, is a seven-year,
interest-only loan (eliminating the previous amortisation
obligations) with a margin of 115bp over 3-month Euribor, floored
at zero. The outstanding swap portfolio was restructured to provide
interest rate hedging to match the new loan maturity.
The Refinancing Facility will be drawn down by the Borrowers on
13 September 2019. The Company's LTV (excluding cash held on
balance sheet) following drawdown increased from 28.6% to 39.2%,
while the overall cost of financing decreased from 2.19% to 2.13%.
The weighted average financing term remained unchanged at c. 7
years.
The remainder of the Refinancing Facility will be used to fund
working capital and take advantage of other market
opportunities.
Additional Facility of EUR50m
The Additional Facility is available for drawdown over a period
of 24 months and carries a commitment fee of 57.5bp. On
utilisation, the drawn amounts will be subject to the same terms as
the Refinancing Facility.
Rent Control Update
Further to our most recent update on 2(nd) September, the Berlin
Ministry for Housing published the draft law on its proposed
'Mietendeckel' or rent cap. A consultative process which will allow
representations to be made from all industry participants,
including landlords, is now underway. A Berlin Senate resolution on
the final draft is currently scheduled to take place in
mid-October, with implementation of the new rules expected in
January 2020.
Pending the conclusion of the consultative process (and any
further amendments), the "final form" of the rent-cap proposals
still lack clarity. However, the Company is actively planning its
strategic response to these proposals.
The company remains of the view that the rent proposals are
unconstitutional and there are mounting legal arguments to support
the view that State law cannot supersede Federal law.
Robert Hingley, Chairman of Phoenix Spree Deutschland Limited,
commented:
"We are delighted to have formed a new relationship with Natixis
and to have secured a new credit facility which provides the
Company with more flexible and cost-efficient financing and
provides sufficient liquidity in order to take advantage of
opportunities that may arise from the current regulatory
uncertainty."
The Company expects to report its interim results for the
six-month period ended 30 June 2019 towards the end of September
2019.
For further information, please contact:
Phoenix Spree Deutschland Limited
Stuart Young +44 (0)20 3937 8760
Numis Securities Limited (Corporate Broker)
David Benda +44 (0)20 3100 2222
Tulchan Communications (Financial PR)
Elizabeth Snow +44 (0)20 7353 4200
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END
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