Picton lifts debt facility to £129 million, extends maturity to 2031

By Rebecca Melvin

Concord, N.H., March 29 – Picton Property Income Ltd. announced it has secured £49 million additional borrowings for one of its long-term debt facilities, lifting the total amount to £129 million and extended the maturity to July 2031 from July 2027, according to a company notice.

The new borrowings bear interest at 3.25%, with the rate of the original £80 million tranche reduced by 20% to match the new tranche’s level.

Proceeds will be used to repay much of the company’s revolving credit facility, which was recently drawn to fund property acquisitions. The remaining proceeds will be used to fund identified acquisitions and capital projects within the portfolio.

Prior to the refinancing transaction the company had two principal fixed-rate long-term debt facilities totaling £165 million and a revolving credit facility that had £31 million drawn.

Following the transaction, overall borrowings for the U.K.-based real estate investment trust increased from £196 million to £219 million. It has £65 million available for investment. The weighted average interest rate of the drawn debt will be reduced from 4% to 3.7%, and there will be future interest savings of £700,000 per year on the original £80 million tranche of debt.

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