MedicX Fund raises £50m through private loan note placement

MXF : MedicX Fund raises £50m through private loan note placement

MedicX Fund has announced that it has raised £50m through the private placement of a loan note with a single institutional buyer. The loan notes mature in August 2019 and have an all-in interest rate fixed at 3.80%. The notes are secured against certain properties. £15 million of the cash will be drawn immediately, with the remaining £35 million top be drawn down in December 2014. MedicX reports that, including this new facility, its average all-in fixed rate of debt is 4.35% and the average unexpired term is 13.4 years. Assuming the funds were fully drawn immediately with the proceeds invested in the completion of existing properties under construction or the purchase of new properties, adjusted gearing (the ratio of total debt to total assets in each case net of cash and cash equivalents) would be expected to be approximately 55.2%.

The MedicX Fund is a specialist primary care infrastructure investor in modern purpose-built primary healthcare properties, principally let to GPs and primary care trusts in the United Kingdom.