8th Dec 2009 07:01
For immediate release 8 December 2009
MedicX Fund Limited
Agreement of new debt facility
The Board of MedicX Fund, (LSE: MXF) today announces that the Group has agreed terms with Deutsche Postbank for a £25.5 million facility over a 5 year term. The loan interest rate will be fixed as the loan is drawn down. Based upon the current 5 year swap-rate the loan would be fixed at an all-in rate, including margin, of 5.0%. This is at the same rate as the Fund's existing £100 million facility with Aviva for the 30 years to December 2036.
Bank lending margins have widened considerably over the last two years resulting in the Group deciding to fix the cost of the new borrowing for five years rather than be tied into a higher rate for a longer term loan. This additional facility will be earnings enhancing due to the attractive margin between the borrowing rate and the yield available on new property investments. The loan will be drawn down at 65% loan to value on the properties secured, against a 70% loan to value covenant that will be tested after year two and year four. The loan amortises by 1% per annum. The interest to income covenant of the loan is 140% and is expected to be comfortably exceeded.
The additional debt puts the Fund in a position to pursue further acquisition opportunities and it has already identified opportunities to acquire assets at attractive yields. Following the announcement on 5 October 2009 of the acquisition of three new primary care properties under forward funding agreements for £14 million, headroom exists for around £10 million further investment.
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For further information please contact:
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MedicX Fund David Staples, Chairman |
+44 (0) 1481 723 450 |
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MedicX Group Keith Maddin, Chairman Mike Adams, Managing Director |
+44 (0) 808 2025461 |
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Buchanan Communications Charles Ryland / Lisa Baderoon / Miranda Higham |
+44 (0) 20 7466 5000 |
Information on MedicX Fund Limited
MedicX Fund Limited ("MXF", the "Fund" or the "Company", or together with its subsidiaries, the "Group") the specialist primary care infrastructure investor in modern, purpose-built primary healthcare properties in the United Kingdom, listed on the London Stock Exchange in November 2006. It has committed investment of £196.3 million and a portfolio of 50 properties.
The Investment Adviser to the Company is MedicX Adviser Ltd, which is authorised and regulated by the Financial Services Authority and is a subsidiary of the MedicX Group. The MedicX Group is a specialist investor, developer and manager of primary healthcare properties with 33 people operating across the UK.
The Company's website address is www.medicxfund.com
Related Shares:
Medicx Fund