4th Aug 2009 14:42
INVISTA FOUNDATION PROPERTY TRUST LIMITED
UPDATE ON PROPOSED PARTIAL DISCOUNTED REPAYMENT OF BORROWINGS
The Board of Invista Foundation Property Trust Limited (the "Company") announced on 10 July 2009 that a one-off tender offer had been made by Real Estate Capital (Foundation) Limited to repurchase and cancel existing listed, securitised borrowings (the 'Notes') which currently total £213.5 million of principal value. Noteholder consent to allow this repurchase and cancellation was also being sought. This opportunity arose from the current dislocation in credit markets which resulted in the Notes trading at a discount to face value. The Company had committed up to £55 million towards the repayment of these Notes and associated costs. The proposal did not seek to make any changes to the financial covenants of the Notes.
The Company now announces that sufficient Noteholders have represented that they are unwilling to allow the repurchase and cancellation of these outstanding Notes at a discount. As such, it is not possible for the repurchase and cancellation of any Notes to proceed.
The Company has significant cash funds resulting in a strong financial position, which provides for significant operational flexibility. As at 30 June 2009, the Company had a loan to value ratio, net of all cash totalling approximately £80 million, of 44% against a covenant of 60%. As at the same date, the ICR calculated in accordance with the loan agreement is 181% against a covenant of 150%.
The Board of the Company and the Manager remain focussed on the active management of the Company's portfolio to protect, and ultimately enhance, its capital value and income.
For further information please contact:
Invista Real Estate Investment Management
Duncan Owen 020 7153 9300
Northern Trust
David Sauvarin 01481 745529
Financial Dynamics
Dido Laurimore / Rachel Drysdale 020 7831 3113
Related Shares:
Schroder Real