- UK regional real-estate investment trust Regional REIT said on Thursday it had secured a new £36m secured 10-year refinancing facility.

"The new facility will enable us to repay current borrowings, execute new opportunities and maintain one of the sector's highest progressive dividends," said CEO of London and Scottish Investments Limited, Stephen Inglis.

£13m of the proceeds from the new facility, which was agreed with Scottish Widows, would be used to repay the outstanding balance of the 5% ICG Longbow Limited facility, which was due to mature August 2019, with the remainder being used for acquisitions and capital expenditure.

The company said the new facility's rate, which would be set on the drawdown date, was very competitive. It was expected to be 3.45-3.6%.

It also agreed to extend the Royal Bank of Scotland £34.3m facility for one year to December 2021.

As a result of the above activity, the Group's cost of borrowing, including hedging, would be ca. 3.8%, with an unexpired debt term extended to 6.5 years, and, following the proposed repayment of the Zero Dividend Preference Shares in January 2019 would be c.3.5% and 7.2 years, respectively.

At 8:17am: [LON:RGL] Regional Reit Limited share price was +0.15p at 96.15p

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