PRS REIT has completed the refinancing of its £150m revolving credit facility (RCF) provided by The Royal Bank of Scotland and Lloyds Banking Group.
The closed-ended REIT has secured a £102m facility of fixed-rate debt for 15 years and a further £75m of floating rate debt for two years with Legal and General Investment Management and RBS respectively, on “attractive commercial terms in light of the current interest rate environment”.
An interest rate cap will be put in place on the floating rate debt to hedge against downside risk on further interest rate movements.
The facility had been originally due to mature in February 2023 and was extended on substantially the same terms to mid-July 2023, with an option to extend until October 2023.
PRS REIT will immediately deploy £115m of the total debt – the entire £102m fixed-rate facility and £13m of the floating-rate facility – to “fund already completed and stabilised sites”, with the balance of £62m of floating-rate debt “expected to be drawn down to fund sites completing and stabilising before calendar year 2024”.
