The Board of Directors of Impact Healthcare REIT plc (ticker: IHR), the real estate investment trust which gives investors exposure to a diversified portfolio of UK healthcare real estate assets, in particular care homes, is pleased to announce that it has agreed £75 million of new long-term debt provided by two large UK insurance companies.
Impact has entered into an agreement with these institutional investors to issue £75 million of senior secured notes (the “Notes”), comprising two tranches with a weighted average coupon of 2.967%, and a weighted average maturity of 14 years.
The two tranches comprise:
· £37 million of Notes at a fixed coupon of 2.932% which were issued on 21 December 2021 and mature in December 2035; and
· £38 million of notes at a fixed coupon of 3.002% which will be issued on 20 June 2022 and mature in June 2035.
The Notes represent Impact’s debut transaction in the institutional debt market and provide Impact with long-term, fixed-rate debt to match the Group’s long income profile. The first tranche has lengthened the Group’s weighted average debt term to 4.7 years, and this will increase further upon draw down of the second tranche in June.
Following drawdown of the first tranche on 21 December 2021, £10 million of the revolving credit facility with Metro Bank has been cancelled, further reducing loan facilities with Metro Bank from £40 million to £30 million. The remainder of the proceeds will be used to fund the Group’s strong pipeline of investments.
After the drawdown of the first tranche and repayment of Metro Bank, the Group’s total available debt stands at £168 million of which £104.5 million is drawn, giving an LTV of c.21% based on gross assets as at 30 September 2021 plus new debt. The Group has headroom of £104 million under its committed bank facilities and available cash, in addition to an uncommitted accordion facility of £24 million.
Rupert Barclay, Chairman of Impact Healthcare REIT plc, commented: “We are delighted with the attractive rates and competitive terms that have been achieved, and how this transaction reflects both the high level of resilience the Group has demonstrated during an exceptionally challenging period, and support from institutional investors for Impact and its strategy.”
FOR FURTHER INFORMATION, PLEASE CONTACT:
Impact Health Partners LLP via Maitland/AMO
Maitland/AMO (Communications Adviser)
James Benjamin email@example.com
Tel: +44 7747 113 930
The Company’s LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at www.impactreit.uk.