Primary Health Properties secures financing

Primary Health Properties said it has obtained a new lending facility from Lloyds Bank and renewed an existing facility with Aviva.

Aviva agreed to renew a £75m secured loan facility to November 2028 at a fixed interest rate of 3.10% per annum.

The existing Aviva facility, due to mature in November 2018, beared interest at a fixed 4.00% rate, so the renewal would generate interest savings of £675,000 per annum.

The new £30m secured revolving credit facility with Lloyds is for an initial three-year period, with the option to extend by two further years, at rates ranging from 155bp to 175bps over LIBOR, depending on utilisation.

The loan from Lloyds would be used to fund acquisition opportunities in the UK and Ireland, the company said.