StockMarketWire.com - GCP Student Living has announced that the Group has entered into significantly improved new financing arrangements with its lender, Barclays Bank.

As at 31 March 2014, total bank borrowings were £38.6m (set to mature in July 2015), producing a debt to property value of 35.3%. The company had an interest rate swap with a notional value of £25.1m million at a rate of 2.745%, and a weighted average cost of debt of 4.4% at that date.

The company has now secured a £40m facility with Barclays set to mature in May 2019.

The previous interest rate swap has been terminated and replaced with an interest rate swap with a notional value of £20m. The cost of cancelling the previous swap was £0.6m.

The new banking arrangements will reduce the Group's weighted average cost of debt to 3.0%.

Accordingly, as of today, total bank borrowings were £40m, producing a debt to property value of 26.7% after the issue of new shares and the acquisition of Scape Greenwich.


At 12:45pm: [LON:DIGS] GCP Student Living Plc share price was +0.13p at 106.75p



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