£20m increase in Civitas loan facility
The Board of Civitas Social Housing PLC is pleased to announce that the Company has agreed a £20m increase to the £40m 3-year floating rate revolving loan facility from Lloyds Bank plc (the ‘Facility’), which was announced on 17 November 2017. The facility is based upon a margin over three month LIBOR.
The Facility increase, arranged by Lloyds Bank Commercial Banking, is secured by an additional ring-fenced portfolio of the Company’s properties and otherwise remains on the same terms. Rothschild & Co advised the Company.
The Facility increase is secured against properties within the Company’s Ordinary Share class and will assist the Company to enhance the dividend yield. It is anticipated that a final tranche of debt finance will be secured against the Ordinary Shares in due course. The facility also offers greater capital flexibility for the Company while assembling its portfolio, alongside the primary use of long-term debt.
Michael Wrobel, Chairman of Civitas, commented: “We are delighted to have secured this loan facility increase from Lloyds Bank, which demonstrates the continued support of commercial lenders for the Company and the delivery of high quality social housing to those in need.”