14th Oct 2022 14:23
abrdn Property Income Trust Ltd - commercial property investor - On Wednesday competes an extension to its borrowing arrangements with the Royal Bank of Scotland International. Says the extension has been agreed for another three-year with a term loan of GBP85 million and a revolving credit facility of GBP80 million. The new facility will start in March 2023 with a margin of 150 basis points over Sterling Overnight Index Average for both the term loan and the RCF. API currently has two loan facilities with the bank. One is a GBP110 million term loan and the other is a GBP55 million revolving credit facility. Both facilities are due to expire in March next year.
API Fund Manager Jason Baggaley says: "We are delighted to have extended our relationship with RBSI, who we have a longstanding relationship with. The margin of 150bps is very competitive, and reflects that relationship along with the quality of the portfolio. The impact of the elevated swap rates is disappointing, and we have reduced the size of the term loan as a result."
abrdn Property enters into forward interest rate swap on the full amount of the term loan. The RCF will have a floating rate based on the prevailing sonia rate. The cost of the swap is 5.47%.
Current stock price: 53.93 pence, up 2.5% on Friday morning in London
12-month change: down 25%
By Xindi Wei; [email protected]
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