Regional REIT pays down debt- Regional REIT (RLG) has announced yesterday that they have a new 10 year facility for a total of £36 million with Scottish Widows Limited that was arranged by Bank of Scotland’s Real Estate and Housing Team. Regional will use the loan to pay back the remaining 5% (£13 million) of their previous facility with ICG Longbow Limited (due to mature in 2019). The remainder of the facility will be used for acquisitions and capital expenditure. The new facility has a competitive rate of around 3.45-3.6%. The fund has also agreed to extend the Royal Bank of Scotland £34.3 million facility for 1 year to December 2021. As a result, the cost of borrowing is 3.8% and the unexpired debt is extended to 6.5 years.
Regional REIT also announced that they will be winding up Regional REIT ZDP. Regional REIT ZDP announced the final capital entitlement of the ZDP shares at their maturity 9 January 2019 will be 132.9p per ZDP share.
Stephen Inglis, chief executive officer of London & Scottish Investments Limited, had the following to say about the recent facility: “This refinancing is another example of our disciplined approach to risk management and securing well priced debt for longer terms to minimise the effects of any future interest rate rises. The new facility will enable us to repay current borrowings, execute new opportunities and maintain one of the sector’s highest progressive dividends. Regional REIT continues to be well supported by its key lenders through its next phase of growth. We are delighted to continue to work with both Scottish Widows and the Royal Bank of Scotland and look forward to strengthening our close working relationship over the coming years.”
RGL/RGLZ- Regional REIT pays down debt