LXi REIT has agreed a £100m revolving credit facility with Lloyds Bank to gear net proceeds from the company’s recent equity raise.
The facility has been provided at a margin of 1.55% per annum over Libor and has an initial term of three years, which could be extended by a further two.
The facility has been secured against a portfolio of the company’s assets and once fully drawn will maintain the REIT’s loan-to-value ratio at 30%.
John White, partner at LXI REIT Advisors, said: “We are pleased to have agreed this new revolving credit facility with Lloyds Bank, which will provide the company with flexible and cost-efficient committed capital, to invest in additional long-let and index-linked assets, which we expect will deliver further value for our shareholders.”
The announcement follows LXi REIT’s equity raising strategy, where it raised £200m from shares issue to fund its pipeline.
It issued 169.1m shares at a price of 118p per share, reflecting a 3% premium to the net asset value of its properties.
It will use the proceeds to deliver its pipeline of acquisitions in the next three months, seeking to diversify its portfolio in terms of tenant, geography and sector exposure.
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