Refinancing Completed


 

TIDMOTE 
 
RNS Number : 7978A 
O Twelve Estates Limited 
15 October 2009 
 

 
 
O Twelve Estates Limited ('O Twelve' / the 'Company') 
 
 
15 October 2009 
 
 
O TWELVE ESTATES ANNOUNCES SUCCESSFUL RESTRUCTURE OF 
GROUP'S LOAN FACILITIES 
 
 
The directors of O Twelve are pleased to announce the restructuring of the 
Group's loan facilities with Nationwide Building Society and the other lenders. 
The revised loan terms, which are substantially the same as those agreed in 
principle as reported in the Group's results announcement on 15 July 2009, are 
as follows: 
 
 
  *  The term of the facility until December 2014 is unchanged; 
  *  The facility will reduce to GBP140 million on 31 March 2011; 
  *  The interest margin over Libor will increase from 0.65% per annum to 1.25% per 
  annum; 
  *  An arrangement fee of GBP850,000 has been paid on signing; 
  *  A fee of GBP5,950,000 will be payable on final repayment of the facility; 
  *  LTV will not be tested until the Lenders receive the portfolio valuation as at 
  31 March 2011, at which time the LTV must not exceed 85%, reducing to 80% from 
  31 March 2012 and 75% from 31 March 2013; 
  *  The minimum interest cover ratio will be 115%, provided that, if rent free 
  periods were treated as rent passing the ratio would be at least 120% until 31 
  March 2011, increasing to 120% thereafter; 
  *  Cash lock up will continue until the LTV is 70% or less. However, after 
  deducting finance costs, direct property outgoings and property management fees, 
  the Lenders will allow the Group to receive up to GBP400,000 per quarter to 
  cover overheads, tax and other property expenses. 
 
Following completion of the restructuring and payment of the arrangement fee, 
cash balances available to the Group are GBP1.5 million. 
 
 
Phillip Rhodes, Chairman of O Twelve, said: 
 
 
"The completion of the loan restructuring demonstrates the confidence our 
lenders have in the strategy and future of the Company. In addition there are 
signs that the unprecedented falls in UK property valuations over the past two 
years have now bottomed out, enabling the Board to view the future with 
increasing confidence. 
 
 
"The Group's target area in the Thames Gateway was selected to take advantage of 
the urban regeneration and infrastructure projects taking place in this area and 
for which the 2012 Olympic Games are a major catalyst. Letting activity over the 
past six months has been very positive with ten new lettings totaling 164,000 sq 
ft completed, thus reducing the void rate from 12.5% of estimated rental value 
at 31 March 2009 to 10.5% today. If lettings which have been agreed and are 
currently in solicitors' hands are completed, the void rate would reduce further 
to 7%. This activity confirms the underlying resilience of the Group's target 
area." 
 
 
 
 
-ENDS- 
 
 
For further information please contact: 
 
 
 
+----------------------------------------------+---------------------------+ 
|                                              |                           | 
+----------------------------------------------+---------------------------+ 
| Rugby Asset Management                       | +44 (0) 20 7016 0050      | 
+----------------------------------------------+---------------------------+ 
| David Tye                                    |                           | 
+----------------------------------------------+---------------------------+ 
| Andrew Wilson                                |                           | 
+----------------------------------------------+---------------------------+ 
|                                              |                           | 
+----------------------------------------------+---------------------------+ 
| Financial Dynamics                           | +44 (0) 20 7831 3113      | 
+----------------------------------------------+---------------------------+ 
| Dido Laurimore                               |                           | 
+----------------------------------------------+---------------------------+ 
| Rachel Drysdale                              |                           | 
+----------------------------------------------+---------------------------+ 
| Laurence Jones                               |                           | 
+----------------------------------------------+---------------------------+ 
|                                              |                           | 
+----------------------------------------------+---------------------------+ 
| Fairfax I.S. plc                             | +44 (0) 20 7598 5368      | 
+----------------------------------------------+---------------------------+ 
| Simon Bennett                                |                           | 
+----------------------------------------------+---------------------------+ 
| Jeremy Porter                                |                           | 
+----------------------------------------------+---------------------------+ 
 
 
 
Notes to Editors 
 
 
O Twelve was formed to establish a substantial property investment portfolio in 
the Thames Gateway and the adjacent areas of east London, Essex, South 
Hertfordshire and North Kent. 
 
 
Rugby Asset Management Limited ("RAM"), a subsidiary of Rugby Estates plc, is 
Property Adviser to O Twelve. 
 
 
Further information on O Twelve can be found at www.otwelveestates.com 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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