Business
Increase in headroom with £40m refinancing
Increase in headroom with £40m refinancing.
About this update from Palace Capital Plc
[{"type":"text","content":"\n \nRNS Number : 1434I Palace Capital PLC 07 August 2019 \n\n7 August 2019\n \nPalace Capital plc\n(\"Palace Capital\" or the \"Company\")\n \nPALACE CAPITAL INCREASES HEADROOM WITH £40M REFINANCING\n \nPalace Capital (LSE: PCA), the UK REIT that has a diversified portfolio of UK regional commercial real estate in carefully selected locations outside of London, today announces that it has signed a new secured £40 million revolving credit facility (\"RCF\") from NatWest with a maturity of five years, to replace the current £29.4 million NatWest facility.\n \nThe RCF provides the Group with additional firepower over current drawings to support operational flexibility, deliver further portfolio initiatives and offers wider scope for new investments that meet the Company's selective investment criteria.\n \nThe Group is currently £106.2 million drawn on its existing facilities (34% LTV using 31 March 2019 values) and the RCF increases the Company's total debt facilities to £154.6 million. With the benefit of the new facility, the initial weighted average cost of debt (prior to amortisation of fees) at current rates will be 3.2%, reducing to 3.1% if fully drawn (weighted average cost of debt for 12 months to 31 March 2019: 3.3%).\n \nAt current drawings, the Group is 65% fixed or hedged, and the possibility of additional hedging remains under review.\n \nStephen Silvester, Finance Director of Palace Capital, commented: \"We are pleased to build on our long-term relationship with NatWest. This new facility further strengthens our financial platform, takes our average debt maturity out to 4.7 years and provides us with greater flexibility to implement our active programme of portfolio management, refurbishment and development at a highly competitive cost of debt whilst remaining within our targeted LTV range of 30% to 40%.\"\n \n \nFor further information, contact:\nFTI Consulting (Financial PR)\nClaire Turvey / Methuselah Tanyanyiwa\[email protected]\nTel. +44 (0)20 3727 1000\n \nAbout Palace Capital plc (www.palacecapitalplc.com):\nPalace Capital plc (LSE: PCA) is a UK REIT with a c. £285 million diversified portfolio of UK regional commercial property. The Company maintains a disciplined investment strategy focused o...