EUR51 million Secured Note Issue

RNS Number : 0411L

Primary Health Properties PLC

20 December 2018

 

Primary Health Properties PLC

€51 million Secured Note Issue

Primary Health Properties PLC ("PHP" or the "Company"), a leading investor in modern primary healthcare facilities in the UK and Ireland, today announces a wholly owned subsidiary has issued new senior secured notes for a total of €51 million at a blended fixed rate of 2.4973% and a weighted average maturity of 10.4 years. The secured notes are guaranteed by the Company.

The secured notes were placed with UK and Irish institutional investors in two tranches:

·      €40 million 2.460% Senior Notes due December 2028

·      €11 million 2.633% Senior Notes due December 2030

The notes represent PHP's first euro-denominated transaction in the private placement market and once again demonstrates the Company's ability to source funding from a broad range of alternative providers at attractive rates. The use of euro-denominated debt also provides a natural hedge against movements in exchange rates for its portfolio of assets in Ireland.

The proceeds of the issue will be applied to repay euro-denominated tranches of PHP's existing revolving credit facilities which are available to be redrawn in either sterling or euros in the future to fund the Company's strong pipeline of acquisition opportunities both in the UK and Ireland.

The private placement was arranged by IDCM Limited.

Harry Hyman, Managing Director of Primary Health Properties, commented:

"Today's announcement demonstrates our continued ability to secure long-term funding at attractive rates from a variety of sources. We will use the funds to progress our disciplined strategy of growing PHP's portfolio, particularly in Ireland, through the acquisition of well-priced, strategic assets that will provide strong income returns and the potential for asset growth whilst maintaining a prudent level of gearing."

More information on Primary Health Properties PLC can be found on www.phpgroup.co.uk

Further details:

Harry Hyman Managing Director Tel: [phone]	Richard Howell Finance Director Tel: [phone]
David Rydell / Stephanie Watson Buchanan T [phone]

 

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