Civitas Social Housing PLC £60m 5 year term loan facility with National Westminster bank Plc
The Board of Civitas Social Housing PLC is pleased to announce that the Company has agreed a new £60 million 5-year term loan facility, with extensions for an additional two years and the option of a further £40 million accordion from National Westminster Bank Plc (the “Bank” and the ‘Facility’).
The Facility is based upon a competitive margin over three-month LIBOR that has been fixed by way of a five-year swap. The margin level of the facility is consistent with the Company’s existing investment quality debt and is secured by a ring-fenced portfolio of certain of the Company’s existing properties. The accordion option can be requested by the Company during the first 18 months of the Facility and is subject to Bank consent.
The Facility increases the Company’s financial flexibility and broadens the profile of the existing debt. It also demonstrates the continued attraction of the supported housing sector to major lenders in the UK who benefit from a detailed understanding of the positive eco-system in which the Company’s properties reside.
Michael Wrobel, Chairman of Civitas, commented: “We are delighted to have secured this new competitively priced facility, which follows a detailed programme of due diligence and independent third-party valuation by the Bank. The facility will enable the delivery of further safe, high quality homes for vulnerable adults in the UK.”
Mark Pope, Director at NatWest Real Estate, commented: “NatWest is proud to support Civitas in the delivery of much needed new social homes across the country. Our funding reflects the flexible, consistent and sustainable approach NatWest has to providing finance to all parts of the residential sector, to ensure the continued availability of appropriate housing.”