Impact Healthcare secures £50m interest rate cap
By Josh White
Date: Friday 18 Aug 2023
(Sharecast News) - Impact Healthcare REIT announced the acquisition of a new £50m interest rate cap on Friday, set against the Sterling Overnight Index Average (SONIA) at a rate of 4.0%.
The London-listed real estate investment trust said the cap, effective for two years, would expire on 15 August 2025.
It said the process of setting this cap came at a cost of £1.76m.
With the purchase, Impact Healthcare said it had effectively hedged or fixed the interest rates on 92%, or £175m, of its current drawn debt of £191m.
As a result, the group's weighted average cost of drawn debt currently stood at 4.66%, calculated with SONIA pegged at 5.4%.
"The group's gross loan-to-value ratio at 30 June was 28.5%," the Impact Healthcare board said in its statement.
"No further debt has been drawn at the date of this announcement."
Reporting by Josh White for Sharecast.com.
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