FIXED RATE LOAN NOTES OF £68.5 MILLION
THIS ANNOUNCEMENT HAS BEEN DETERMINED TO CONTAIN INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014.
23 July 2018
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the "Group")
FIXED RATE LOAN NOTES OF £68.5 MILLION
The Board of Triple Point Social Housing REIT plc (tickers: SOHO; SOHC) is pleased to announce that the Group has entered into a long dated, fixed rate, interest only financing arrangement in the form of a private placement of loan notes in an amount of £68.5 million with a US life insurance company (the "Loan Notes").
The Loan Notes are secured against a portfolio of specialist supported living assets throughout the UK, worth approximately £172 million, acquired in the period from admission in August 2017 to the end of March 2018. The amounts which have been drawn down under the Loan Notes are segregated and non-recourse to the Company.
The Loan Notes are split into two tranches: Tranche-A, in an amount of £41.5 million, has a term of 10 years from utilisation and is priced at an all-in coupon of 2.924%; and Tranche-B, in an amount of £27 million, has a term of 15 years from utilisation and is priced at an all-in coupon of 3.215%. On a blended basis, the weighted average term is 12 years carrying a weighted average fixed rate coupon of 3.039%.
The Loan Notes represent a loan-to-value ("LTV") of 40% of the value of the secured assets referred to above, which is in line with the Company's investment policy and long term debt strategy of securing low LTV, long dated debt to capitalise on the low interest rate environment in order to enhance shareholder returns.
The Loan Notes are the first of a planned debt funding programme designed to support the Company's continued growth. Triple Point Investment Management LLP, the Company's Delegated Investment Manager, intends to utilise the proceeds of the Loan Notes to fund an extensive pipeline of further acquisitions over the next three to five months.
In accordance with its investment policy, the Company will maintain a prudent level of gearing, targeting a level of aggregate borrowings of 40% of the Group's gross asset value, subject to an absolute maximum of 50% of the Group's gross asset value (calculated at the time of draw down).
Chris Phillips, Chairman of Triple Point Social Housing REIT plc, said:
"We are delighted to have secured this new debt funding which provides the Company with a long dated, senior financing package at an attractive fixed rate, which will be accretive to the Company's dividend yield. This partnership allows the Company to build a long term relationship with a global partner and to implement the long term debt strategy communicated to our investors. This first successful debt raise is one of a series of debt raises due to be secured in the short to medium term."
IDCM acted as Sole Arranger and Gowling WLG acted as legal advisor to the Group.
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
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Triple Point Investment Management LLP (Delegated Investment Manager) |
(via Newgate below) |
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James Cranmer |
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Ben Beaton |
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Max Shenkman |
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Justin Hubble |
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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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Canaccord Genuity Limited (Joint Financial Adviser and Corporate Broker) |
Tel: 020 7523 8000 |
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Lucy Lewis |
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Denis Flanagan |
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Andrew Zychowski |
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Newgate (PR Adviser) |
Tel: 020 7680 6550 |
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James Benjamin |
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Anna Geffert |
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Patrick Hanrahan |
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The Company's LEI is 213800BERVBS2HFTBC58.
Further information on the Company can be found on its website at www.triplepointreit.com.
NOTES:
The Company invests in social housing assets in the UK, with a particular focus on supported housing. The assets within the portfolio are subject to inflation-adjusted, long-term (typically from 20 years to 30 years), Fully Repairing and Insuring ("FRI") leases with Approved Providers (being Housing Associations, Local Authorities or other regulated organisations in receipt of direct payment from local government). The portfolio comprises investments into properties which are already subject to an FRI lease with an Approved Provider, as well as forward funding of pre-let developments but does not include any direct development or speculative development.
There is increasing political and financial pressure on Housing Associations to increase their housing delivery and this is creating opportunities for private sector investors to participate in the market. The Group's ability to provide forward financing for new developments not only enables the Company to secure fit for purpose, modern assets for its portfolio but also addresses the chronic undersupply of suitable supported housing properties in the UK at sustainable rents and delivering returns to investors.
Triple Point Investment Management LLP (part of the Triple Point Group) is responsible for management of the Group's portfolio (with such functions having been delegated to it by Langham Hall Fund Management LLP, the Company's alternative investment fund manager).
The Company was admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange on 8 August 2017 and was admitted to the premium segment of the Official List of the Financial Conduct Authority and migrated to trading on the premium segment of the Main Market on 27 March 2018. The Company operates as a UK Real Estate Investment Trust ("REIT") and is a constituent of the FTSE EPRA/NAREIT index.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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