17th Sep 2019 09:00
(Alliance News) - Healthcare property-focused investor Primary Health Properties PLC said Tuesday it has issued new senior secured notes worth EUR70 million, which will go towards repaying debt and financing development work.
The notes have a fixed rate of 1.509%, with a maturity of 12 years.
Part of the proceeds will go towards cancelling a EUR32.6 million debt facility with the Bank of Ireland, which was acquired as part of Primary Health's merger with MedicX Fund Ltd in March.
So far, EUR26.2 million has been drawn from the facility at a 3.0% margin.
Proceeds will also go towards financing developments on-site in Ireland, and repaying euro-denominated tranches of Primary Health's revolving credit facilities.
The note issue has reduced Primary Health's average cost of debt, by 32 basis points since its merger with MedicX to 3.68%.
"Today's announcement demonstrates further progress in delivering the finance cost-saving synergies outlined at the time of the merger with MedicX, successfully reducing the group's average cost of debt since completion in March 2019 by 32 basis points to 3.68%," said Finance Director Richard Howell.
"We will use the funds to progress our disciplined strategy of growing PHP's portfolio, particularly in Ireland, through the acquisition of well-priced, strategic assets that will provide strong income returns and the potential for asset growth whilst maintaining a prudent level of gearing," Howell added.
Shares in Primary Health Properties were up 0.8% at 135.61 pence on Tuesday in London.
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