RE Noteholder Meeting

RNS Number : 7832Q

ING UK Real Estate Income Trust Ltd

17 April 2009

 



ING UK Real Estate Income Trust Limited 

17 April 2009

FOR IMMEDIATE RELEASE

17 April, 2009

ING UK Real Estate Income Trust Limited

(the 'Company')

Proposed re-structuring of the Company's Securitised Loan Facility

The Company announces that, following the cancellation by the trustee of the noteholder meeting due to be held on 18 March 2009, and subsequent to discussions with noteholders, a further meeting of the noteholders is expected to be convened for 13 May 2009 to consider and approve proposed amendments to the covenants in the Company's securitised loan facility (the 'Facility') coupled with the early repayment of up to £35 million of the £225 million outstanding under the Facility.

The revised proposals are broadly similar to the proposals which were to be put to noteholders on 18 March 2009. The principal proposed amendments are summarised below, but shareholders should note that the revised proposals are not expected to affect the 'AAA' ratings affirmations issued previously by both Standard & Poor's and Fitch. 

Summary of the principal proposed amendments to the Facility

        ·    Increase the loan-to-value (“LTV”) covenant from 50 per cent. to 60 per cent. until January 2012, when it
         will reduce to 55 per cent., falling back to 50 per cent. in July 2012;

·    Increase the interest cover ratio from 1.5 times to 1.75 times until maturity of the Facility in January 2013;

·    Reduce the Company’s flexibility to make non-core investments, residential investments and undertake developments or major upgrade projects within the Facility;

·    Remove the Company’s ability to hold indirect property investments within the Facility for the purpose of the various financial covenants; and

·    Reduce up to £35 million of the principal amount outstanding under the £225 million Facility by January 2010 through one or more tender offers for an equivalent principal amount of related secured notes, with the first tender offer being held in July 2009 for a minimum of £15 million principal amount of notes:

-          the Company intends to offer to purchase up to £35 million of the outstanding notes by way of a ‘modified Dutch auction’ tender offer, with the first tender offer expected to close in July 2009. If the first tender offer is for less than £35 million of notes, further tender offers will be held on a quarterly basis until the Company has offered to purchase at least £35 million of notes; and

-          the Company intends that only noteholders that vote in favour of the re-structuring proposals will be eligible to participate in the proposed tender or tenders should the proposals be approved by noteholders at the meeting expected to be held on 13 May 2009.

Details of the first tender offer are expected to be sent to noteholders in July 2009 and will be announced to the market at that time. Further information on the proposed changes and the copies of the documents sent to noteholders will be available on the Company's website - www.ingreit.co.uk.

In addition to the proposed re-structuring of the Company's Facility and an ongoing programme of asset sales, the Board and its advisers are continuing to seek other alternatives to strengthen further the Company's balance sheet. 

Shareholders should note that whilst noteholders have been consulted on the proposed amendments, these will only become effective if approved at the noteholder meeting. Such approval will require 75 per cent. of noteholders present and voting at the meeting to vote in favour of the proposed amendments.

For further information:

ING Real Estate Investment Management (UK) Limited

Michael Moris, 020 7767 5648, [e-mail]

Helen Stott, 020 7767 5648, [e-mail]

Enquiries:

The Company Secretary

Northern Trust International Fund Administration Services (Guernsey) Limited
Trafalgar Court

Les Banques

St Peter Port
Guernsey

GY1 3QL

Tel: [phone]

Fax: [phone]

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