27 March 2015
PICTON PROPERTY INCOME LIMITED
("Picton", the "Company" or the "Group")
PICTON ESTABLISHES £26 MILLION REVOLVING CREDIT FACILITY
Picton has entered into a new three-year £26 million revolving credit facility ("RCF"), to provide increased operational and financial flexibility.
The facility provides increased optionality when Picton's 7.25% Zero Dividend Preference Shares ("ZDPs") mature in 2016. If the RCF is utilised, and assuming current 3 month LIBOR, it would significantly reduce the overall cost of debt upon the ZDP repayment.
In addition the RCF can provide flexibility in respect of future acquisitions, which is particularly relevant following completion of the recent Placing Programme. By providing the Company with immediate access to undrawn but committed facilities, in future Picton will be able to move quickly and opportunistically to purchase assets, rather than being reliant on raising new equity capital.
The RCF, established with Santander Corporate & Commercial Banking, has a nominal non-utilisation fee of 70 basis points or £0.18 million per annum. Once drawn, the RCF will incur interest payments of 175 basis points over 3 month LIBOR, which is currently equivalent to 2.3% per annum.
If the RCF is used to replace the ZDPs which mature in October 2016, then the Group's interest cost is expected to fall by in excess of £1 million per annum.
Picton Chairman, Nicholas Thompson, commented: "While providing an immediate short term, lower cost solution for the ZDP repayment due in 2016, the Company now has an extended window until 2018 in which to reconsider the appropriate gearing structure, to suit prevailing market conditions and our corporate strategy."
Andrew Dewhirst, Finance Director, Picton Capital added: "This facility provides the Company with immediate access to undrawn facilities and provides more flexibility, enabling us to act opportunistically in future as we build the portfolio. To have received the support of another established lender in the market is yet another endorsement of our strategy."
For further information:
Jeremy Carey/James Verstringhe, 020 7920 3150, firstname.lastname@example.org
Picton Capital Limited
Michael Morris, 020 7011 9980, email@example.com
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
St Peter Port
David Sauvarin, 01481 745001, firstname.lastname@example.org
Note to Editors
Picton Property Income Limited ('Picton') is an income focused property investment company listed on the London Stock Exchange. Picton can invest both directly and indirectly in commercial property across the United Kingdom.
With Net Assets of £315.7 million at 31 December 2014 and approximately 870 investors, the Company's objective is to provide shareholders with an attractive level of income, together with the potential for capital growth by investing in the principal commercial property sectors. www.pictonproperty.co.uk