Impact Healthcare signs £50m facility with Metro Bank

The London-listed specialist fund said the facility had two elements - an interest-only term loan of £25m, and a revolving credit facility of £25m.

It confirmed it was the group's first debt facility.

The loan facility had a margin of 265 basis points over Metro Bank’s published base lending rate, with the five-year term loan repayable without penalty after two years, and with a 1% penalty if prepaid within the first two years.

Amounts drawn under the revolving credit facility could be repaid at any time without penalty, Impact’s board said.

It added that £25m of the term loan and £5m of the revolving credit facility were secured over a portfolio of 30 care homes, held in a wholly-owned group company.

If the loan facility was fully drawn, the group's loan-to-value would be 20% based on its net assets at 31 March.

The group's maximum loan-to-value was 35% of gross asset value of the group as a whole.

“The loan facility will help the group to manage its capital structure in line with its investment policy in a flexible manner and will support the group with its future growth plans,” the board said in its statement.

“The net proceeds of the £32.6m equity fundraising in November 2017 are fully invested or committed.”

Impact Healthcare said it was currently putting in place interest rate options to hedge its exposure.