Lok’nStore bags Lloyds loan

  Lok’nStore has agreed a new £40m five year revolving credit facility with Lloyds TSB Bank.   The facility will replace the AIM listed self-storage company’s existing facility with Royal Bank of Scotland which was due to expire in February 2012 and “will provide working capital for the development of the business over the medium term”.   The group is not obliged to make any repayments of the new credit line prior to its expiry in 2016.   The margin will be at the London Inter-Bank Offer Rate (LIBOR) plus 2.35%–2.65% margin based on a loan to value covenant test – 2.35% at Lok’nStore’s current LTV level – while the interest cover and loan to value covenants are broadly in line with the previous facility.   Lok’nStore chief executive, Andrew Jacobs, said: “This new banking facility with its attractive terms and structure underlines the financial strength of Lok’nStore with its modest gearing and strong and growing cash flow.   “We have established a business model that can thrive in the downturn and this new facility will enable the group to continue to execute its growth strategy.”   Lok’nStore will announce its preliminary results for the year to July 2011 on 7 November.   bridget.oconnell@estatesgazette.com