Custodian REIT plc : Extension of Revolving Credit Facility
On 25 February 2014, the Company agreed a RCF of £25 million with Lloyds Bank plc ("Lloyds") for a term of five years, and on 13 November 2015, the total funds available under the RCF were increased from £25 million to £35 million with the termination date extended to 13 November 2020. The RCF is secured by way of a first charge over a discrete portfolio of properties, providing the lender with a maximum loan to value ("LTV") ratio of 50% on those properties specifically charged to it and a floating charge, with interest cover of at least 250% LTV. Under the terms of agreement, the Company pays interest of 2.45% above three-month LIBOR per annum on the outstanding amounts utilised under the agreement from time to time.
On 14 January 2019 the Company and Lloyds agreed to increase the total funds available under the RCF from £35 millionto £45 million until 30 June 2019, to provide the Company with additional capacity for property acquisitions.
Commenting on the extension of the RCF, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:
"Securing additional short-term debt capacity will provide flexibility to exploit any acquisition opportunities arising over the next six months."