LXi REIT signs €639m loan facility to refinance debt maturities

UK long-income specialist LXi REIT signed a £565 mln (€639 mln) loan facility with a syndicate of banks, including a number of existing lenders.

This represents the final step of the £773 mln (€874 mln) refinancing of its near-term debt maturities.

The secured interest-only debt facility comprises of a £200 mln (€226 mln) five-year revolving credit facility, a £115 mln (€130 mln) five-year term loan and a £250 mln (€283 mln) three-year term loan.

The blended margin on the bank facility is 2.23% per year over sterling overnight index average.

Cyrus Ardalan, chairman, commented: ‘We are delighted to have signed this facility, which represents the final step of our comprehensive refinancing programme. The combination of the medium-term and revolving bank facilities, along with the long-term institutional facilities announced on 6 March, provides the Company with operational flexibility, including an ability to migrate further to unsecured/debt capital markets funding in due course. It will also underpin our long-term progressive dividend policy.’

The company was advised on the Bank Facility by Rothschild & Co.

The loan facility is the final step of the Group's refinancing of its shorter-term debt maturities, following the recent signing of the £148 mln (€167 mln) 16-year term loan with an institutional lender and extension of the £60 mln (€68 mln) HSBC loan, announced in March.

LXi REIT now benefits from a diversified group of lenders with eight different banks and lending organisations across its capital structure.

Assuming a fully drawn revolving credit facility, the real estate investment trust's borrowings total £1.3 bn (€1.5 bn), with a weighted average debt maturity of six years.

LXi REIT invest in commercial property assets predominantly in the UK, let or pre-let on very long, inflation-linked leases to a wide range of strong tenant covenants across a diverse range of property sectors.


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