RBS Amends Empiric Student Term Loan Facility
The Board of Empiric Student Property announced a £35.5 million ($54.9 million) term loan facility with The Royal Bank of Scotland plc (RBS) was amended and restated facility with RBS. RBS has made a revolving term loan facility of £55.5 million available to the group.
Subject to certain conditions, including the approval by RBS of the suitability of any new properties introduced as security, the RBS Facility provides the group with the flexibility to change the assets against which the loan is secured andor increase or reduce the amount of loan drawn down up until three months prior to the termination date (October 24, 2019).
The amount of £35.5 million currently advanced under the Original Loan is fully hedged via a co-terminus five year interest rate swap with NatWest Bank. The rate of interest payable on the hedged portion of the RBS Facility is equal to a margin of 1.9% above the swap rate. The interest rate on any unhedged amounts (if any) drawn down under the RBS Facility from time to time is 1.9% above LIBOR. The company currently intends to put in place interest hedging arrangements in respect of any further amounts drawn down under the RBS facility.
The amounts drawn down under the RBS Facility will be segregated and non-recourse to the company.
As set out in the company’s investment policy, the company will maintain a conservative level of aggregate borrowings of no more than 40% of the gross asset value of the Company (calculated at the time of draw down).