Lok’nStore has agreed a new £40m banking facility on improved terms with RBS.
The five-year revolving credit facility will replace an existing facility which was due to expire in October 2016 and will provide funding for site acquisitions and working capital.
The margin on the new facility is 1.4-1.7% over LIBOR. This compares to the existing 2.35-2.65% margin.
Loan-to-value covenants will be in line with the previous facility.
Andrew Jacobs, chief executive of Lok’nStore Group said: “This new banking facility, with its substantially improved terms and structure, underlines the financial strength of Lok’nStore with its modest gearing, valuable property assets and strong and growing cash flow.
“This new facility will save approximately one penny per share per annum of funds from operation lending support to our ability to pay progressive dividends, and will enable the group to continue to execute its current growth strategy with three new stores opening over the coming months.”
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