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 the Group has signed a new revolving credit facility of £26 million (the “New Facility”) with National Westminster Bank plc (“NatWest”), with an accordion agreement to increase this facility to £50 million, subject to lender approval. At the same time, the Group has agreed to repay £10 million of its £25 million term loan with Metro Bank PLC (“Metro”).
The New Facility is for an initial term of three years with an option to extend, subject to lender approval, for up to a further two years. The New Facility has a margin of 190 basis points per annum over SONIA, which is currently equivalent to a total drawn cost of debt of 1.95% per annum.
This is the Group’s first facility utilising SONIA and the Group is in discussions with HSBC and Clydesdale on the transition of these facilities from LIBOR to SONIA.
Term debt repayment
At the same time, the Group has agreed with Metro to repay £10 million of the term loan with the release of certain properties from Metro’s security pool which have been used as security under the New Facility agreement with NatWest. No early repayment fees are due to Metro. The amount repaid is not able to be redrawn and, following the repayment, the Group has in place £40 million of facilities with Metro: £15 million term loan and £25 million revolving credit facilities, both due to mature in June 2023 and at a margin of 265 basis points over Metro’s base rate.
The New Facility, after the reduction of the Metro facility, takes the Group’s total committed facilities to £141 million, of which £15 million is a term loan and £126 million are revolving credit facilities.
This New Facility will help to ensure that the Group continues to be well capitalised and increases its balance sheet flexibility with further diversification of more attractively priced funding to support the Company’s growth:
The Group continues to pursue a number of attractive investment opportunities and expects to announce further updates during the next quarter.
For further information please contact:
Impact Health Partners LLP via Maitland/AMO
Maitland/AMO (Communications Adviser)
Tel: 07747 113 930
The Company’s LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at www.impactreit.uk.