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Picton cuts debt as it repays zeros

Picton Property Income has published an update following the repayment of all its 7.25% zero dividend preference shares and revolving credit facility, together with asset disposals announced in August and October:

  • GBP45 million of NAV accretive disposals, reducing central London office exposure.
  • Repayment of GBP15.8 million previously drawn under a revolving credit facility.
  • Repayment of GBP29.1 million made to zero dividend preference shareholders due on 15 October 2016.
  • Picton ZDP Ltd (LSE: PCTZ) delisted on 17 October 2016.

As a result of this change Picton will be classified by the Association of Investment Companies (AIC) in the ‘Property Direct – UK’ sector only, rather than also in the ‘Split Capital Trust’ sector.

In terms of borrowings, on a proforma basis to 30 June 2016, the effect of the debt repayments and disposal proceeds are as follows:

  • Total drawn debt reduced to GBP205.2 million (30 June 2016: GBP249.7 million).
  • Average debt maturity increased to 12.2 years (30 June 2016: 10.4 years).
  • Loan to value ratio reduced to 29.6% (30 June 2016: 34.4%).
  • Weighted average cost of debt reduced to 4.2% (30 June 2016: 4.4%).
  • GBP53 million of undrawn and available debt facilities.

PCTN : Picton cuts debt as it repays zeros

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