July 22, 2019 Finance

LXi REIT plc new £100m revolving credit facility

The Board of Directors of LXi REIT, a specialist inflation-protected long income REIT, is pleased to announce that the Company has agreed a new £100 million revolving credit facility to gear the net proceeds of the Company’s recent equity raise (the “New Facility”).

The New Facility, which has been provided by Lloyds Bank plc at an attractive margin of 1.55% per annum over LIBOR, provides the Company with additional operational flexibility and complements the Company’s existing 10-year, 12-year and 15-year term loan facilities with Scottish Widows.

The New Facility has an initial term of three years, which may be extended by up to two years and is on a non-recourse basis to the Company, secured against a defined portfolio of the Company’s assets, held as a lending group through a wholly owned Company subsidiary.

The New Facility, once fully drawn, will maintain the Company’s loan-to-value ratio at 30%, in line with its medium term target and below its maximum level of aggregate borrowings of 35%, and the Company will hedge the underlying interest rate with a cap instrument.

John White, Partner at LXI REIT Advisors Limited, commented:
“We are pleased to have agreed this new revolving credit facility with Lloyds Bank, which will provide the Company with flexible and cost-efficient committed capital, to invest in additional long-let and index-linked assets, which we expect will deliver further value for our shareholders. The continued backing from our core relationship loan provider underlines the strength of support for the Company and our investment strategy as well as the strong fundamentals of the inflation-protected long income real estate sector.”

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