Home » News » FTSE 250 » Primary Health Properties PLC issues secured notes for €70 million
Primary Health Properties

Primary Health Properties PLC issues secured notes for €70 million

Primary Health Properties PLC (LON:PHP), a leading investor in modern primary healthcare facilities in the UK and Ireland, today announced a wholly owned subsidiary has issued new senior secured notes for a total of €70 million at a fixed rate of 1.509% with a maturity of 12 years. The secured notes are guaranteed by the Company and were placed with UK and Irish institutional investors.

The notes represent PHP’s second euro-denominated transaction in the private placement market and once again demonstrates the Company’s ability to source funding from a broad range of alternative providers at attractive rates. The use of euro-denominated debt also provides a natural hedge against movements in exchange rates for its portfolio of assets in Ireland.

The proceeds of the issue will be partially applied to repay and cancel a €32.6 million facility with Bank of Ireland, of which €26.2 million was drawn at a 3.0% margin, and acquired as part of the merger with MedicX Fund Limited in March 2019. The balance will be applied to finance the developments currently on site in Ireland and to repay euro-denominated tranches of PHP’s existing revolving credit facilities, which are available to be redrawn in either sterling or euros in the future to fund the Company’s strong pipeline of acquisition opportunities both in the UK and Ireland.

The secured note issue extends the Group’s debt maturity profile as well as reducing the Group’s average cost of debt which now stands at 3.68%.

The private placement was arranged by IDCM Limited.

Richard Howell, Finance Director of Primary Health Properties, commented:

“We are delighted to have concluded this transaction at attractive rates and to have received continued support from the private placement market. Today’s announcement demonstrates further progress in delivering the finance cost saving synergies outlined at the time of the merger with MedicX, successfully reducing the Group’s average cost of debt since completion in March 2019 by 32bps to 3.68%.

We will use the funds to progress our disciplined strategy of growing PHP’s portfolio, particularly in Ireland, through the acquisition of well-priced, strategic assets that will provide strong income returns and the potential for asset growth whilst maintaining a prudent level of gearing.”

More information on Primary Health Properties PLC can be found on www.phpgroup.co.uk