Assura plc, a leading UK primary healthcare property investor, has successfully signed to enter into a £100m unsecured private placement (“Private Placement”). The financing has a maturity of 10 years and is provided at a fixed rate coupon of 2.65%. The funds will be drawn on 13 October 2016.
The Private Placement will be purchased by Pricoa Capital Group and MetLife and each has also agreed additional shelf facilities underlining their further appetite to invest in Assura in the future.
The funding significantly increases capacity for future growth and is a continuation of the property investment that has seen the Group’s portfolio increase by over £600m since April 2012.
Jonathan Murphy, Finance Director at Assura plc, said: “We are very pleased to have diversified the Group’s funding base through the support of two first class institutional investors. This financing is a significant next step as we continue to increase our unsecured funding base to support the business and increase operational flexibility. In addition, the funding is in line with our stated intention of achieving improved terms and pricing at the time of our equity raise in 2015. The Private Placement fixed coupon represents the lowest cost, long term financing in the Group’s history and further positions us for continued growth going forward.“
A team from KPMG’s Debt Advisory practice, led by David Reitman working alongside James Hatton and Siobhan Murray, advised Assura throughout the financing process.
David Reitman commented: “This is a landmark transaction as it represents the first unsecured private placement in the primary care property sector. The financing also highlights the attractive funding opportunities that still abound for excellent businesses with strong credit profiles. We are therefore delighted to have advised Assura on securing this long term funding, on highly attractive terms, which will ultimately support the business’ ambitious growth plans for the future.”
Assura received legal advice from Gary Grigor and Martin O’Shea at Addleshaw Goddard.