REG - Impact Healthcare - £24 Million Extension of Revolving Credit Facility

Impact Healthcare REITAnnouncement

29/06/2023 07:00

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RNS Number : 3019E  Impact Healthcare REIT PLC  29 June 2023

The information contained in this announcement is restricted and is not for
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jurisdictions), Canada, Australia, Japan or the Republic of South Africa.

 

29 June 2023

Impact Healthcare REIT plc

("Impact" or the "Company" or, together with its subsidiaries, the "Group")

£24 MILLION INCREASE IN SIZE AND FOUR YEAR EXTENSION TO EXISTING REVOLVING
CREDIT FACILITY WITH NATWEST

ONE YEAR EXTENSION TO REVOLVING CREDIT FACILITY WITH HSBC

Impact Healthcare REIT plc (ticker: IHR) announces that it has increased the
size and extended the maturity of its revolving credit facility with National
Westminster Bank Plc (the "NatWest RCF") and extended its revolving credit
facility with HSBC Bank UK Plc ("HSBC RCF") by a year.

 

The NatWest RCF has been increased by £24 million, making the total facility
£50 million. It has also been extended by four years, from June 2024 to June
2028, with a further two one-year extension options (subject to lender
approval) to June 2030. In recognition of the maturity extension, the margin
will be 200 bps above SONIA (up from 190 bps). The interest cover covenant has
been reduced from 250% to 175% in the first two years, increasing to 200% for
the remainder of the term.

 

The Group has also agreed a one-year extension option to its HSBC RCF to April
2026. The interest cover covenant is being reduced from 250% to 200%, with the
margin remaining at 200 bps above SONIA.

 

The Group has repaid the remaining £15 million outstanding under the Metro
Bank PLC debt facility, which matured in June 2023. It now has total available
debt of £250 million, of which £191 million is currently drawn.  The
weighted average term of debt has increased from 6.3 years in December 2022,
to 6.8 years (excluding extension options).

 

The Group's gross loan to value ("LTV") ratio at 31 March 2023 was 28.3% and
is currently 28.9% on a roll-forward basis(1).

 

The Group has £125 million of debt currently fixed or hedged, after the
expiry of a £25 million interest rate cap in June 2023.  66% of the drawn
debt is currently hedged and the Group is reviewing options to increase
this.  The average cost of drawn debt is currently 4.8% and would increase by
17 bps for every further potential 50 bps increase in SONIA.

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 Impact Health Partners LLP                                                             Via H/Advisors Maitland
 Andrew Cowley
 Mahesh Patel
 David Yaldron

 Jefferies International Limited                                                        +44 20 7029 8000
 Tom Yeadon                                    tyeadon@jefferies.com
 Ollie Nott                                    onott@jefferies.com

 Winterflood Securities Limited                                                         +44 20 3100 0000
 Neil Langford                                 neil.langford@winterflood.com
 Joe Winkley                                   joe.winkley@winterflood.com

 H/Advisors Maitland (Communications adviser)                                           +44 7747 113 930
 James Benjamin                                impacthealth-maitland@h-advisors.global
 Rachel Cohen

 

The Company's LEI is 213800AX3FHPMJL4IJ53.

 

Further information on Impact Healthcare REIT is available at
www.impactreit.uk (http://www.impactreit.uk/) .

 

NOTES:

Impact Healthcare REIT plc is a specialist and responsible owner of care homes
and other healthcare properties across the UK. Elderly care is an essential
service and demand for it is high and continues to grow, as the UK's
population gets older. We work with our tenants so we can grow together and
help them care for more people, while continuing to improve our homes for
their residents.

 

We take a long-term view and look to generate secure and growing income. This
has allowed us to provide our shareholders with attractive and rising
dividends and the potential for capital growth.

 

The target total dividend for the year ending 31 December 2023 is 6.77 pence
per share(2), a 3.53% increase over the 6.54 pence in dividends paid or
declared per ordinary share for the year ended 31 December 2022.

 

The Group's Ordinary Shares were admitted to trading on the main market of the
London Stock Exchange, premium segment, on 8 February 2019. The Company is a
constituent of the FTSE EPRA/NAREIT index.

 

Neither the content of the Company's website, nor the content on any website
accessible from hyperlinks on its website for any other website, is
incorporated into, or forms part of, this announcement nor, unless previously
published by means of a recognised information service, should any such
content be relied upon in reaching a decision as to whether or not to acquire,
continue to hold, or dispose of, securities in the Company.

1    Current debt drawn divided by Gross Assets as at 31 March 2023.

2    This is a target only and not a profit forecast. There can be no
assurance that the target will be met and it should not be taken as an
indicator of the Company's expected or actual results.

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