Further Fixed Rate Term Loan Facility
1 March 2016
Empiric Student Property plc
("Empiric" or the "Company" or, together with its subsidiaries, the "Group")
Further Fixed Rate Term Loan Facility of £40 million agreed with Canada Life
The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of modern, premium student accommodation across the UK, is pleased to announce that the Group has agreed a further fixed rate term loan facility of £40 million with Canada Life Investments ("Canada Life") (the "Canada Life Facility B"), which will be secured against a portfolio of four forward committed assets on their practical completion, held as a lending group through a wholly owned subsidiary, Empiric Investments (Two) Limited. Practical completion of the four properties is expected to occur in time for the start of the 2016/17 academic year.
The Canada Life Facility B will be available to draw down in full from 27 July 2016 and is repayable in two £20 million tranches (in March 2024 and July 2031, respectively) and has a fixed all in rate of 3.52 per cent. throughout the term. The Loan Agreement prescribes a maximum loan to value ratio of 50 per cent.
The amounts drawn down under the Canada Life Facility B will be segregated and non-recourse to the Company.
In accordance with the Company's investment policy, the Company will maintain a conservative level of aggregate borrowings typically of 35 per cent. but no more than 40 per cent. of the gross asset value of the Company (calculated at the time of draw down).
Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:
"Canada Life continues to be a supportive lending partner with this new additional long term facility which helps to support the overall funding structure of Empiric."
For further information on the Company, please contact:
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Empiric Student Property plc |
(via Newgate below) |
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Paul Hadaway (Chief Executive) |
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Tim Attlee (Chief Investment Officer) |
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Michael Enright (Chief Financial Officer) |
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Akur Limited (Joint Financial Adviser) |
Tel: 020 7493 3631 |
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Tom Frost |
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Anthony Richardson |
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Siobhan Sergeant |
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Jefferies International Limited (Joint Financial Adviser and Broker) |
Tel: 020 7029 8000 |
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Gary Gould |
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Stuart Klein |
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Newgate (PR Adviser) |
Tel: 020 7680 6550 |
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James Benjamin |
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Alex Shilov |
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Lydia Thompson |
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Further information on Empiric can be found on the Company's website at www.empiric.co.uk.
Notes:
Empiric Student Property plc is a leading provider of modern, direct-let, premium, student accommodation across the UK. Investing in both standing and development assets, the Company focuses on quality, with assets generally in prime central locations in top university cities and towns in the UK, attracting international students and/or those studying beyond first year, in particular, postgraduates. For the 2015/16 academic year, Empiric's customer base comprised 69% international students from 98 countries and 78% of the Company's customers were beyond their first year of study.
The Company (incorporated in England & Wales), an internally managed real estate investment trust ("REIT"), listed on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in June 2014.
This information is provided by RNS
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