The Board of Empiric Student Property plc (ticker: ESP) is pleased to announce that the Group has agreed a 15-year fixed rate £31.1 million loan facility with Canada Life Investments ("Canada Life") (the "Canada Life Loan"), secured against a portfolio of eight
standing assets held as a lending group through a wholly owned subsidiary, Empiric Investments (Two) Limited.
The Canada Life Loan has a fixed rate priced at 3.97 per cent. This rate is fixed up to a loan-to-value ratio of 50 per cent.
The amounts drawn down under the Canada Life Loan will be segregated and non-recourse to the Company.
As previously stated, the Company will maintain a conservative level of aggregate borrowings of no more than 40 per cent. of the gross asset value of the Company (calculated at the time of draw down).
Commenting on the transaction, Paul Hadaway, Chief Executive of the Company, said:
"We are delighted to welcome Canada Life as our lending partner for this long term facility - comprising a modest but important part of the overall funding structure of Empiric. The Board continues to seek to optimise the capital structure of the Company to
ensure both longer and shorter term facilities can be employed as appropriate."