Empiric Student Property has agreed a new £70m revolving credit facility with Lloyds Bank.
The facility has a margin of 1.75% pa above three-month LIBOR and is repayable three years from the date of agreement, but can be extended by 12 months by mutual consent, on each of the first and second anniversaries to a total of five years.
It is secured against a portfolio of operating assets, held as a lending group, through a wholly owned group subsidiary.
The facility can be used for general corporate purposes including the financing of the purchase of properties by any group company to be operated as student accommodation or in refinancing the costs of acquisition of such properties.
In accordance with its investment policy, the company will maintain a conservative level of aggregate borrowings, targeting a level of 35%, but no more than 40% of the gross asset value of the company (calculated at the time of draw down).
Andrew Wheldon, director of Lloyds Bank Commercial Real Estate said: “We are pleased to support Empiric with this facility which is secured against premium assets in central locations in prime UK university cities and towns and will support the management team with its future growth plans.”
Empiric chief financial officer Lynne Fennah said: “This new facility provides the company with further flexibility in financing future acquisitions, within our target loan-to-value parameters. This is a new debt funding relationship and we look forward to working with Lloyds Bank in the future.”
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