Impact Healthcare REIT has increased the size and extended the maturity of its revolving credit facility (RFC) with NatWest and extended its revolving credit facility with HSBC Bank UK by a year

The NatWest RCF has been increased by £24 million, making the total facility £50 million. It has also been extended by four years, from June 2024 to June 2028, with a further two one-year extension options (subject to lender approval) to June 2030. In recognition of the maturity extension, the margin will be 200 bps above SONIA (up from 190 bps). The interest cover covenant has been reduced from 250% to 175% in the first two years, increasing to 200% for the remainder of the term.

The group has also agreed a one-year extension option to its HSBC RCF, to April 2026. The interest cover covenant is being reduced from 250% to 200%, with the margin remaining at 200 bps above SONIA.

Impact has repaid the remaining £15 million outstanding under the Metro Bank debt facility, which matured in this month. It now has total available debt of £250 million, of which £191 million is currently drawn. The weighted average term of debt has increased from 6.3 years in December 2022, to 6.8 years (excluding extension options).

The group’s gross loan-to-value ratio at 31 March 2023 was 28.3% and is currently 28.9% on a roll-forward basis.

The group has £125 million of debt currently fixed or hedged, after the expiry of a £25 million interest rate cap this month. 66% of the drawn debt is currently hedged and Impact is reviewing options to increase this. The average cost of drawn debt is currently 4.8% and would increase by 17 bps for every further potential 50 bps increase in SONIA.