London, June 26
27 June 2018
PICTON PROPERTY INCOME LIMITED
(“Picton”, the “Company” or the “Group”)
Early Debt Repayment
Picton has entered into an agreement with one of its principal lenders to reduce the amount of debt outstanding by £33.7 million, effective 20 July 2018. The current interest rate on the debt being repaid is 4.08% with a maturity in July 2022.
The repayment will be funded by utilising £23 million of existing cash resources, generated from recent asset disposals, and by using its revolving credit facility (“RCF”) which has a current interest rate of 2.4%.
The debt repayment is expected to reduce finance costs by £1 million per annum in the short term, which will reduce further if the Company subsequently repays its RCF from additional asset sales. The proforma Group LTV following the repayment will be 26% and this could reduce to approximately 22% were the RCF to be fully repaid.
Picton will incur a one off repayment fee of approximately £3.1 million to effect the changes, dependant on gilt yield movements between now and 20 July 2018.
As part of the transaction, Picton has secured a number of other amendments to the loan documentation which inter alia provide increased operational flexibility, both in terms of how the loan portfolio is constructed and also by relaxing criteria that currently ring fence proceeds following asset disposals.
Michael Morris Chief Executive of Picton Capital Limited, commented:
“This repayment marks another positive step in our ongoing strategy to optimise Picton’s debt position through the property cycle. We have also secured other important changes, which will increase our operational flexibility ahead of our planned UK REIT conversion later this year.”
For further information please contact:
Jeremy Carey/James Verstringhe, 020 7920 3150, firstname.lastname@example.org
Picton Capital Limited
Michael Morris, 020 7011 9980, email@example.com
Note to Editors
Picton is a property investment company established in 2005. It owns and actively manages a £684 million diversified UK commercial portfolio, invested across 51 assets and with around 360 occupiers (as at 31 March 2018). Through an occupier focused, opportunity led approach to asset management, Picton aims to be one of the consistently best performing diversified UK focused property companies listed on the main market of the London Stock Exchange.
For more information please visit: www.picton.co.uk