31st Mar 2008 15:40
Grainger PLC31 March 2008 31 March 2008 Grainger plc ("Grainger"/"Group"/"Company") Grainger Announces Additional Debt Facility Grainger plc, the UK's largest quoted residential property owner, is pleased toannounce that it has created significant additional liquidity in its core UKdebt portfolio by raising a further £228 million five-year revolving creditfacility. The average maturity of the Group's main facility has now increased toapproximately four years and across the whole Group the average maturity of ourdebt is five years. The first refinance of part of the main facility is due inJune 2010. This new facility will increase Grainger's headroom to approximately £412million including cash of £73 million and the average lending margin on its coreUK debt will increase by just four basis points to 77 basis points. Thispositions Grainger well to act upon acquisition opportunities as they arise,thereby enhancing its ability to create shareholder value. At 31 January 2008, the loan to value ratio on the Company's core facilityamounted to 57.9%, compared to a bank covenant limit of 80%, although thebanking documentation provides for property acquisitions to be reduced shouldthe loan to value ratio exceed 70%. Andrew Cunningham, Grainger's Deputy Chief Executive and Finance Directorcommented: "Liquidity, the availability of finance and securing debt of longer maturitiesare vital factors for real estate companies in the current credit environment.We are very encouraged that our relationship banks continue to support us insuch a positive way, demonstrating third party confidence in the robustness ofour business model. It is particularly pleasing that we have introduced two newparticipants, Bank of Ireland and Handelsbanken, to the core group of lendersand we look forward to working with them in the future. "As we mentioned in our recent Interim Management Statement, whilst we continueto seek and identify opportunities, we do so with caution and will continue toonly act upon those that are well priced and where we can add value. This newfacility gives us flexibility that we believe will prove very valuable in themedium term." For further information:Grainger plc Financial DynamicsAndrew Cunningham Stephanie Highett Tel: +44 (0) 191 261 1819 Dido LaurimoreKeith Sadler Jamie Robertson Tel: +44 (0) 191 261 1819 Tel: +44 (0) 20 7831 3113 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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