viewPrimary Health Properties PLC

Primary Health cancels loan facility after loan note issue

"We are delighted to have concluded this transaction at attractive rates and to have received continued support from the private placement market."


Primary Health Properties PLC (LON:PHP) has raised €70mln through a loan note issue.

The investor in modern primary healthcare facilities in the UK and Ireland said the new senior secured notes have been issued with an interest rate of 1.509% and have a term of 12 years.

Some of the proceeds from the issue will be applied to repay and cancel a €32.6mln loan facility with the Bank of Ireland, of which €26.2mln was drawn at a 3.0% margin. The loan facility was acquired as part of the company’s merger with MedicX Fund Limited in March 2019.

The rest of the money raised 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.

“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%,” said Richard Howell, the finance director of Primary Health Properties.

“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," he added.

Quick facts: Primary Health Properties PLC

Price: 150.8 GBX

Market: LSE
Market Cap: £1.98 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Primary Health Properties PLC named herein, including the promotion by the Company of Primary Health Properties PLC in any Content on the Site,...



Primary Health Properties to 'continue generating strong returns'

Capital Network analyst Ed Stacey reckons the conditions remain in place for Primary Health Properties PLC (LON:PHP) to continue generating strong returns in the next few years and to continue its unbroken run of dividend increases. PHP is a real estate investment trust (REIT) that...

on 06/11/2019

2 min read