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Life Science REIT refinances term loan, revolver and adds green loan
By Marisa Wong
Los Angeles, June 27 – Life Science REIT plc has refinanced its existing £150 million term loan and revolving credit facility secured on its existing portfolio, including Oxford Technology Park, according to a press release.
The refinanced term loan and revolver have been provided by existing lender HSBC, with an additional lender, Bank of Ireland, also joining the banking syndicate.
The HSBC and BoI facilities include a £100 million fully drawn term loan, increased from £75 million, and a £50 million revolver, both of which have had their terms extended to March 2026, with two further one-year extensions available.
Both facilities are split 60:40 between HSBC and BoI, respectively. Additionally, the company has a £35 million accordion facility available on the revolver.
Both facilities now carry a cost of Sonia plus a margin of 250 basis points.
The Sonia reference rate on both facilities has been capped at 2% until March 2025. The facility also includes a ratchet clause that reduces the margin rate to 235 bps if the gross loan to value ratio decreases to 30%.
The company has also defined £40 million of the term loan as a green loan in accordance with the LMA Green Loan Principles, secured on Rolling Stock Yard in London and completed OTP buildings, which are rated either BREEAM Excellent or EPC “A.”
Following this refinancing, £48.7 million remains available under the revolver to be used for funding the ongoing development at OTP, which will be drawn on a quarterly basis to meet development funding requirements and minimize interest costs throughout the remaining development period.
The company said it repaid the development debt facility acquired with OTP in February 2023, which carried a significantly higher interest rate.
The real estate investment trust focused on U.K. life science properties is based in London.
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