LXi REIT gets £100 million three-year revolver at Libor plus 155 bps

By Sarah Lizee

Olympia, Wash., July 22 – LXi REIT plc agreed on a new £100 million revolving credit facility to gear the net proceeds of the company’s recent equity raise, according to a press release.

The new revolver, which was provided by Lloyds Bank plc at a margin of 155 basis points over Libor, provides the company with additional operational flexibility along with its existing 10-year, 12-year and 15-year term loan facilities with Scottish Widows.

The revolver has an initial term of three years, which may be extended by up to two years and is on a non-recourse basis to the company, secured against a defined portfolio of the company’s assets, held as a lending group through a wholly owned subsidiary.

The revolver, once fully drawn, will maintain the company’s loan-to-value ratio at 30%, in line with its medium-term target and below its maximum level of total borrowings of 35%, and the company will hedge the underlying interest rate with a cap instrument.

LXi is a real estate investment trust based in London.

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