Redefine International, the income focused property company, is pleased to announce that it has refinanced its £46.0 million (approx. €53.77 million) Zeta facility with Lloyds TSB Bank PLC.
A new £38.5 million facility, reflecting a 55% loan to value ratio, has been agreed for a three year term with options to extend for two further one year periods. 75% of the loan amount has been fixed for the initial three year term at an all-in rate of 4.06% with the balance of the loan at 3.25% above three month Libor.
The £7.5 million (approx. €8.77 million) reduction in the loan balance was funded with £5.5 million of cash already secured by the facility following a previously announced lease surrender and the subsequent sale of the Telford property. The remainder was funded utilizing existing cash resources. The loan is secured against the Company’s UK Government let offices (excluding the Delta portfolio).
The refinancing of the Zeta facility secures the last of any material near term debt maturities and further enhances the Company’s already significantly improved financial position. The Group’s average cost of debt (excluding the Delta facility) remains largely unchanged at 5.0% and, as reported in the half yearly results to 28 February 2013, the Company has a loan to value ratio of 51.2%.
Source: Redefine International