Primary Health Properties PLC (LSE:PHP) said it refinanced what it termed legacy loans with Aviva investors and renewed an existing facility with NatWest.
The former is a 15-year term, £200mln loan fixed at 2.25%, the proceeds from which have been used to repay £177mln of loans from the insurance group. The new loan is its first be linked to PHP’s sustainability targets.
At the same time, it has renewed a £100mln revolving credit facility with NatWest, which also has environmental benchmarks attached to it. The initial term is three years with options to extend at the end of year one and year two.
PHP said the financial rejig reduced the average cost of debt to 2.9% from 3.4%, saving the company £5mln annually in the process.
The group, which builds and lets healthcare properties such as doctors’ surgeries, has undrawn facilities of £237mln.
"With a robust balance sheet and a strong pipeline of opportunities to expand our portfolio both in the UK and Ireland, PHP remains exceptionally well-positioned to deliver low-risk sustainable shareholder returns,” said PHP chief financial officer, Richard Howell.