UK Commercial Property Secure GBP80m Funding From Lloyds TSB

Fri, 20 Jun 2008

UK Commercial Property Trust Ltd. has secured a seven-year term loan facility worth £80m from Lloyds TSB Scotland Plc.

The company said the fund, with an interest margin of 50 basis points (bps) per annum, will be used for all general corporate purposes including working capital, making acquisitions, and share buy-back plans.

The Trust will pay a commitment fee of 20 bps per year on un-drawn commitments, and a pre-payment fee of one half of the interest margin if the facility is cancelled within one year of the first drawdown.

In addition, it can place additional debt facilities if the total loan-to-value does not exceed 50 per cent of its net assets .

In such a case, the interest margin would be 55 bps if the loan-to-value exceeds 5 per cent of its net assets, and 60 bps if it exceeds 10 per cent, the company added.

As a result of the loan agreement with Lloyds TSB Scotland, the company said it will have "around £120m of funds in hand", placing it in a very strong position to take advantage of current opportunities in the commercial property market .
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