Business
Completion of a £154 million long-term, green loan
Completion of a £154 million long-term, green loan.
About this update from Cls Holdings Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 4974A\n CLS Holdings PLC\n 30 September 2020\n \n \n \n \n \n \n \n Release date: 30 September 2020 \n \n \n Embargoed until: 07:00 am \n \n \n \n \n \n \n \n \n \n \n \n CLS Holdings plc (\"CLS\")\n \n \n announces the completion of a £154 million long-term, green loan with Aviva Investors\n \n \n \n \n \n CLS announces that it has completed a £154 million loan with Aviva Investors which is secured on a portfolio of 12 UK properties. This loan replaces three existing loans of £67 million, which were due to expire in 2020 and 2021, as well as gearing unencumbered properties and will result in net additional cash to CLS of £86 million, after costs. Subject to certain conditions, CLS will be able to remove or substitute properties as security for the loan.\n \n \n \n \n \n Over 60% of the properties by value are offices including 166 College Road, Harrow and Twenty Kingston Road, Staines, which were acquired earlier this year, as well as the office, hotel and student accommodation at our mixed-use Spring Mews property in Vauxhall. The offices have a WAULT of 5.2 years.\n \n \n \n \n \n The £154 million loan, which has a loan to value of 55%, is in two tranches split equally between 10-year and 12-year tranches. The average interest rate is 2.62% fixed.\n \n \n \n \n \n The loan has been independently assured as a \"green loan\" in line with LMA sustainability principles with up to a 10-basis point margin reduction dependent on the delivery of specific sustainability targets. As noted, cash and gross debt will increase by £86 million with net debt and gearing remaining unchanged at c.35%. Weighted average debt maturity will increase from 3.1 years as at 30 June 2020 to 4.5 years on a pro forma basis. The additional funds will increase CLS' cash reserves and allow for the evaluation of further acquisition opportunities.\n \n \n \n \n \n Andrew Kirkman, Chief Financial Officer of CLS, commented:\n \n \n \n \n \"We are pleased to have secured this £154m loan with such a well-established real estate funder as Aviva Investors. This loan increases our weighted average loan maturity by nearly 50% to 4.5 years. Moreover, we are delighted that the loan recognises our sustainability progress and incentivises our futu...