Primary Health Properties (PHP) has completed a £800m refinancing deal with eight banks.
The unsecured facility comprises a new club term loan of £300m (three years), a £250m revolving credit facility (RCF) (three years) and a £250m RCF (five years).
Each tranche has the option to extend by two additional one-year periods, subject to lender approval, and PHP intends to draw down £500m initially, leaving £300m of undrawn liquidity headroom across the enlarged group, which will be used to repay and cancel existing debt facilities
The facility has been provided by NatWest, Lloyds, Barclays, HSBC, Santander, Deutsche Bank, ABN Amro and CaxiaBank.
Richard Howell, CFO of PHP, said: “The successful refinancing is an important step on PHP’s journey to becoming a fully unsecured borrower and we are delighted to continue our long-standing relationships with a number of banks as well as engaging new lenders. The new facility enhances our capital structure, reduces our cost of capital and supports our wider funding strategy with the proceeds being used to partially refinance the £1bn bridging facility put in place to finance the acquisition of Assura in 2025. We now look ahead to refinancing the balance through completing our deleveraging initiatives.”
PHP was advised by Rothschild & Co. NatWest acted as sole coordinator.
