Care home investor Impact Healthcare REIT has secured £75m of new long-term debt to aid its expansion plans.
Impact Healthcare said the debt had been provided by two large UK insurance companies and comprised two tranches with a weighted average coupon of 2.96%, and a weighted average maturity of 14 years.
The two tranches comprise £37m of notes at a fixed coupon of 2.93% that mature in December 2035 and £38m of notes at a fixed coupon of 3% which mature in June 2035.
The first tranche has lengthened the group’s weighted average debt term to 4.7 years. This will increase further upon drawdown of the second tranche in June.
Impact Healthcare said the drawdown of the first tranche had enabled it to cancel a £10m revolving credit facility with Metro Bank, reducing its debt with the bank from £40m to £30m. The remainder of the new debt will be used to fund the group’s pipeline of investments.
Rupert Barclay, chairman of Impact Healthcare REIT, said the debt deal reflected “both the high level of resilience the group has demonstrated during an exceptionally challenging period, and support from institutional investors for Impact and its strategy”.
Impact Healthcare’s total available debt now stands at £168m, of which £104.5m is drawn, giving an LTV of 21%. The group said it had headroom of £104m in committed bank facilities and available cash.
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