22 June 2016
PICTON PROPERTY INCOME LIMITED
(“Picton”, the “Company” or the “Group”)
New £27 million revolving credit facility
Picton, the property investment company, has entered into a five year £27 million revolving credit facility ("RCF") with Santander Corporate & Commercial Banking.
The RCF, which is similar to the facility set up in March 2015, will provide the Group with greater operational flexibility. In addition to existing undrawn facilities, it can be used to meet the repayment of the 7.25% Zero Dividend Preference Shares ("ZDPs") that mature in October 2016, as well as providing the additional firepower to make opportunistic acquisitions.
The terms of the facility allow for it to be repaid and redrawn over the life of the loan as required. This will enable Picton to better manage its gearing position and if appropriate provides the flexibility to reduce gearing using proceeds from any future asset disposals.
Secured across four assets, the RCF has a nominal non-utilisation fee of 70 basis points, equivalent to £0.19 million per annum. Once drawn, it will incur an interest charge currently equivalent to 2.3% per annum, reflecting 175 basis points over 3 month LIBOR.
If the facility is used to repay the ZDPs in October, it will significantly reduce the Group’s overall annual cost of debt by £1.3 million, resulting in a 7% increase in dividend cover per annum on a pro forma basis.
As at today´s date, in total the Group has access to £37.2 million of undrawn facilities.
Picton Chairman, Nicholas Thompson, commented: "This transaction will enable Picton to simplify its corporate structure in October through the repayment of ZDPs, extending the Group’s debt maturity profile and reducing the overall cost of debt."
Andrew Dewhirst, Finance Director, Picton Capital added: "We have secured a flexible 5 year facility that complements our existing debt structure. It also ensures we can maintain an efficient balance sheet that we can adjust according to market conditions."
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
Note to Editors
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 £417.1 million at 31 March 2016, 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.picton.co.uk