6th Mar 2023 09:38
(Alliance News) - LXi REIT PLC on Monday said that it has completed the first stage of its ongoing refinancing with a new GBP150 million loan and an extension to its existing HSBC facility.
The London-based commercial real estate-focused investment trust signed the new 16-year, interest-only term loan with a "leading insurance company".
It carries a margin of 1.8% per year. Drawing on the new facility is conditional on the completion of due diligence, which LXi REIT expected to complete in the coming weeks.
The firm has also agreed a short-term extension of six months to its existing GBP60 million loan with HSBC Holdings PLC. The loan now matures in December 2024, and carries a margin of 2.1%.
LXi told investors that it would likely buy an additional cap to hedge the cost of the facility to expiry, using a small part of the GBP24 million cash realised on the disposal of the cap instrument used to hedge the Merlin A facility that was redeemed in October.
The firm also said that the second step of its refinancing is at an advanced stage of negotiations with agreed heads of terms, with a club comprising a number of its existing lenders.
It said that a further announcement, including details about the company's new weighted average cost and term of debt following the refinancing process, will be made upon signing of the facility.
LXi REIT shares were 0.2% lower at 109.20 pence each in London on Monday morning.
By Holly Beveridge; Alliance News reporter
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Related Shares:
LXI.LHSBC Holdings