LXi signs new £150m loan with insurer

LXi REIT has signed a new £150m loan facility and extended its HSBC loan. The new 16-year, interest-only term loan has been signed with a leading insurance company, with a margin of 1.75% pa. The new facility will be secured against a ring-fenced pool of assets. The LTV default covenant has been set at 60%, requiring a 33% fall in the value of the secured assets to trigger a breach from the day-one valuation. The interest cover ratio default covenant has been set at 170%, requiring a 32% fall in the net rental income of the secured assets to trigger a breach. LXi has also agreed a short-term extension of the term of its existing £60m loan with HSBC, which will now mature in December 2024, with a further six-month extension option subject to lender consent. Following the extension, the HSBC facility carries a margin of 2.05% pa above Sonia and benefits from an existing interest rate cap until July 2023 at 1.84%. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews