Tamar European Industrial Fund has announced that it has received confirmation of credit committee approval from pbb Deutsche Pfandbriefbank for an extension of its existing 88 million debt facilities (the 'Facility').
The Facility will be extended for a period of 3.5 years from the current maturity of November 2011. The cost of finance will be 6.5%. The grant of the extension will be subject to further standard conditions and signing of final legal documents.
Rob Brook, Managing Director of Tamar Financial Services Limited, commented: "Given the current challenging market conditions, particularly the tightening bank lending, it has been a pleasing result to complete the refinancing of the RBS debt before Christmas and now to have secured a positive solution for the PBB extension."
Giles Weaver, Chairman of TEIF, said: "The successful extension to this facility, despite the tight debt market, is illustrative of the strength of the team, their banking relationships and the quality of the underlying assets.
"As previously announced, in light of the ongoing refinancing (which the Fund has been negotiating for many months) the Board is undertaking a reappraisal of the overall direction of the business so that it is best positioned to provide sustainable earnings growth and to maximize shareholder value. A further update will be provided on this in due course."