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INVESTMENT GRADE RATING & £195 MILLION LOAN NOTES
INVESTMENT GRADE RATING & £195 MILLION LOAN NOTES.
About this update from Social Housing Reit Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 9406J\n Triple Point Social Housing REIT\n 27 August 2021\n \n \n \n \n \n \n \n 27 August 2021\n \n \n \n \n \n Triple Point Social Housing REIT plc\n \n \n (the \"Company\" or, together with its subsidiaries, the \"Group\")\n \n \n INVESTMENT GRADE CREDIT RATING 'A-' AND SUSTAINABILITY-LINKED FIXED RATE LOAN NOTES OF £195 MILLION\n \n \n \n \n \n The Board of Triple Point Social Housing REIT plc (ticker: SOHO) \n is pleased to announce the following updates:\n \n \n \n \n \n · \n The Group has put in place £195 million of long dated, fixed rate, interest only sustainability-linked loan notes through a private placement with MetLife Investment Management clients and Barings (the \"\n \n Loan Notes\n \n \") respectively. The Loan Notes have a weighted average term of 13 years and a weighted average fixed rate coupon of 2.634%. The Loan Notes will enable the Group to refinance its existing floating rate Revolving Credit Facility (the \"\n \n RCF\n \n \").\n \n \n \n \n \n · \n Fitch Ratings Limited (\"\n \n Fitch\n \n \") has assigned the Company \n an Investment Grade Long-Term Issuer Default Rating of 'A-' with a stable outlook, and a senior secured rating of 'A' for the Group's new Loan Notes.\n \n \n \n \n \n \n \n \n Investment Grade Rating\n \n \n \n \n \n Fitch's credit rating report highlights a number of favourable attributes of the Company and the specialised supported housing sub-sector within which the Company operates. These include:\n \n \n \n \n \n · \n Community-based accomodation \"is typically cheaper and more successful\" than institutional alternatives, such as inpatient hospitals.\n \n \n · \n Long-dated fully repairing and insuring leases with upward-only rent reviews, with the maintainance obligations residing with the lessee.\n \n \n · \n A low debt-to-equity ratio with debt/EBITDA around 7.5-8.0x and a cost base that should benefit from economies of scale.\n \n \n \n \n \n \n \n \n Fixed Rate Loan Notes of £195 million and Refinancing of Revolving Credit Facility\n \n \n \n \n \n The new Loan Notes are secured against a portfolio of specialised supported living properties located throughout the UK and worth approximately £390 million, \n representing a Day-1 loan to ...