Refinance of loan facility on improved terms

Summary by AI BETAClose X

Ground Rents Income Fund plc has successfully refinanced its £8.235 million loan facility with Santander UK plc, extending the term to January 2028 and reducing the margin by 25 basis points to 2.50% per annum. The new facility maintains the same principal amount but benefits from improved terms, including a lower Loan to Value ratio of 19.2% against a security pool valued at £42.8 million and a revised Interest Cover Ratio covenant of 1.75x. The company has also secured flexibility for additional security, enhancing covenant headroom, and has chosen not to renew its interest rate hedging due to the facility's short duration and anticipated asset disposals.

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