25 July 2012
PICTON PROPERTY INCOME LIMITED
("Picton"or the "Company" or the "Group")
COMPLETION OF LONG TERM FIXED RATE DEBT FACILITIES
Picton Property Income (LSE: PCTN), the internally managed investment company with an income focused approach to the UK commercial property market has, in two simultaneous transactions, completed the refinancing of its secured borrowings as previously announced on 28 June 2012.
· Two new facilities totalling £209 million in aggregate from Aviva and Canada Life.
· The new facilities are being used to repay in full Picton's existing CMBS and bank facilities totalling £188.5 million.
· Staggered maturity profile of 10, 15 and 20 years.
· Fixed interest rate secured at a blended rate of 4.2% per annum.
· Orderly debt repayment through annual amortisation of £0.9 million in the first year following drawdown, rising annually to £2.1 million in year 20, resulting in a total of £28.3 million being amortised over the period.
· The Group will cancel its interest rate derivatives at an expected cost of £3.4 million.
· With this element now completed, Picton will provide a further update in respect of the refinancing of its ZDPs shortly.
Commenting, Nick Thompson, Chairman of Picton, said:
"Completing these transactions represents a significant milestone for Picton. These two long term loans reduce financing costs, which will enable us to reduce indebtedness through an orderly amortisation profile. We can now focus on the options available to facilitate repayment of the zero dividend preference shares, ultimately concluding the final element of this refinancing process."
Michael Morris, Chief Executive of Picton Capital, said:
"Having secured the support of two major lenders we have now provided Picton with stability through a diversified, long term financing package. Recent downward movements in gilt rates have enabled us to take advantage of long term borrowings and fix the financing rate at 4.2% per annum, lower than both the previous rates and initial estimates."
For further information:
Jeremy Carey/James Verstringhe, 020 7920 3150, firstname.lastname@example.org
Picton Capital Limited
Michael Morris, 020 7011 9978, email@example.com
Note to Editors
Picton Property Income Limited ('Picton') is an income focused, internally managed Investment Company listed on the London and Channel Islands Stock Exchanges. It was established in 2005 to invest both directly and indirectly in commercial property across the United Kingdom.
With Net Assets of £196.1 million at 31 March 2012 and approximately 850 investors, the Company's objective is to provide shareholders with an attractive level of income, together with the potential for capital growth by investing in the principal commercial property sectors.