StockMarketWire.com - Lok'nStore plc, the fast growing AIM listed self-storage company, has agreed a new banking facility on improved terms with Royal Bank of Scotland.

The new GBP40 million five year revolving credit facility will replace the existing facility which was due to expire in October 2016, and will provide funding for site acquisitions and working capital.

The margin on the new facility will be at the London Inter-Bank Offer Rate (LIBOR) plus 1.40%-1.65% margin based on a loan to value covenant test (1.40% currently). This is a marked improvement on the existing 2.35%-2.65% margin and the Group will therefore benefit from a lower average cost of debt and improved cash flow. Loan to value covenants are in line with the previous facility.

Chief executive Andrew Jacobs said:"This new banking facility with its substantially improved terms and structure underlines the financial strength of Lok'nStore with its modest gearing, valuable property assets and strong and growing cash flow.

"This new facility will save approximately one penny per share per annum of funds from operation (FFO*) lending support to our ability to pay progressive dividends, and will enable the Group to continue to execute its current growth strategy with 3 new stores opening over the coming months."

Lok'nStore will announce its preliminary interim results for the 6 months to January on 25 April.



Story provided by StockMarketWire.com