Successful Completion of Debt Refinancing


 

TIDMWNER 
 
RNS Number : 2581J 
Warner Estate Holdings PLC 
26 March 2010 
 

                           Warner Estate Holdings PLC 
 
                    Successful Completion of Debt Refinancing 
 
On 26 March 2010 Warner Estate Holdings PLC and certain subsidiaries (together 
"Warner Estate" or the "Group") entered into new facilities with the Royal Bank 
of Scotland and Barclays and extended and amended its current banking facility 
with Lloyds Banking Group (the "Refinancing") in relation to its directly owned 
property assets. 
 
Following the Refinancing the Group's earliest scheduled debt maturity will be 
on 27 April 2012.  Further details on the key terms of the Refinancing are 
provided in the Appendix. 
 
The conclusion of the refinancing discussions, which have been ongoing since 
late 2008, allows management to focus its efforts on maximising income and 
capital growth.  The Group's objectives are to rebuild value in its property 
investments, funds and joint ventures and to expand its asset management 
business. 
 
Date: 26 March 2010 
 
Enquiries: 
 
+------------------------------+------------------------------+ 
| Warner Estate Holdings PLC   | Tel: 020 7907 5100           | 
| Philip Warner, Chairman      |                              | 
|                              |                              | 
| Mark Keogh, Finance Director |                              | 
|                              |                              | 
| Robert Game, Property        |                              | 
| Director                     |                              | 
| Web: www.warnerestate.co.uk  |                              | 
|                              |                              | 
|                              |                              | 
+------------------------------+------------------------------+ 
| Rothschild                   | Tel: 020 7280 5000           | 
|                              |                              | 
| Alex Midgen                  |                              | 
| Richard Blackwell            |                              | 
|                              |                              | 
+------------------------------+------------------------------+ 
| Numis Securities Limited     | Tel: 020 7260 1000           | 
| Heraclis Economides          |                              | 
|                              |                              | 
+------------------------------+------------------------------+ 
| City Profile                 | Tel: 020 7448 3244           | 
|                              |                              | 
| Jonathan Gillen              |                              | 
| Simon Courtenay              |                              | 
|                              |                              | 
+------------------------------+------------------------------+ 
 
Appendix 
 
Further details on the Refinancing 
 
The Group has entered into new facilities with the Royal Bank of Scotland and 
Barclays, and extended and amended its current banking facility with Lloyds 
Banking Group.  The refinanced facilities total GBP261.3million and are secured 
on properties, units in the Apia Regional Office Fund and the Ashtenne 
Industrial Fund managed by Warner Estate and income arising from the Group's 
asset management business.  Two of the facilities, which together total 
GBP176.3million, will expire on 27 April 2012 and the third facility matures on 
31 December 2012. 
 
The Group will pay LIBOR plus a weighted average cash interest margin of 1.6% 
and weighted average non-cash interest margin of 2.8%.  GBP155million of debt 
will be hedged initially and interest rate hedging arrangements will be reviewed 
periodically.  In respect of one facility the Group will pay an exit fee equal 
to 5.0% of the outstanding loan on the maturity date.  In respect of another 
facility the Group will pay an exit fee at maturity that approximates to 20% of 
the excess of the value of the properties secured against the facility over the 
debt at that time.  The Group is obliged to amortise one of the facilities at 
GBP250,000 per quarter.  Additionally, Warner Estate will issue warrants 
representing a total of 5% of the issued share capital to two of the lenders in 
conjunction with the refinancing entitling them to subscribe for ordinary shares 
in Warner Estate at a subscription price of 5 pence for each ordinary share. 
 
One facility has no loan to value ('LTV') covenant.  Another facility has no LTV 
covenant for 12 months following which it will have an LTV covenant of 117.5%. 
The third facility has an initial LTV covenant of 113%.  The LTV covenants on 
the two latter facilities will reduce over the term of the respective 
facilities.  One facility has two interest cover covenants set at 125%, based on 
rental income, and 175%, based on total income. Another facility has an initial 
facility debt service cover ratio covenant of 135% and an initial Group debt 
service cover ratio covenant of 108%; each of the two debt service cover ratio 
covenants will vary over time. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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