STOR-AGE PROPERTY REIT LIMITED - Finalisation of UK Debt Restructure

Finalisation of UK Debt Restructure

Stor-Age Property REIT Limited
Incorporated in the Republic of South Africa
Registration number 2015/168454/06
Share code: SSS ISIN ZAE000208963
Approved as a REIT by the JSE
(“Stor-Age”)


FINALISATION OF UK DEBT RESTRUCTURE


Stor-Age, South Africa’s leading and largest self storage property fund, provides the following update in
relation to its UK debt facilities which were finalised on Thursday 21 October 2021.

Background

Stor-Age’s GBP funding line comprised a £52.0 million Revolving Credit Facility (“RCF”) from Lloyds Bank
(“Lloyds”). To support the future growth of the business, a competitive process was run with a number of
clearing banks and institutional lenders to address our funding requirements on improved terms.

The Lloyds RCF was refinanced and replaced by the introduction of a ‘club’ facility. HSBC UK Bank Plc
(“HSBC”) and Santander UK Plc (“Santander”) were selected as the two banks to participate in the ‘club’
facility. An institutional lender, Aviva Investors (“Aviva”), was also introduced into the wider structure to provide
longer term funding.

Purpose

The debt restructuring process has resulted in the following key benefits:

    -   Increased lending capacity to support future growth – existing £52.0 million facility increased to £96.0
        million (including a £25.0 million accordion option)
    -   Pricing – existing £52.0 million facility priced at a margin of 2.75% above LIBOR has been reduced to
        a blended rate of 2.50% above SONIA (“Sterling Overnight Index Average”) in the club banking facility
        and a blended all-in fixed rate of 3.21% for the institutional loan facility
    -   Improved tenure – the new facilities combined have a weighted average expiry of approximately 5.5
        years
    -   Diversification of funding sources – previous single bank exposure has been increased to two clearing
        banks and an institutional lender, resulting in reduced concentration risk and dependence
    -   Improved funding flexibility – a key objective in the process was an improvement of the terms to allow
        for greater flexibility in the use of the facilities
    -   Improved liquidity from introducing an institutional lender – institutional funding parameters are not
        entirely guided and informed by the same market fundamentals as the clearing banks, providing the
        group with improved funding optionality over the medium term

Key terms:

 Source             Commitments              Tenure             Margin
 Syndicated /     £50m total split as:       3 years            Term: 2.40%
‘club’ banking                                                  RCF: 2.65%
 facility               -   £30m Term Loan
 (HSBC and              -   £20m RCF         Plus 2 x 1 year    The reference rate has now changed
 Santander)                                  extension options  from LIBOR to SONIA which includes
                  Accordion of £25m                             a 10bps credit adjustment spread

                  Loan to value of 50%

 Institutional    £21m Term Loan             7 years            2.3% spread over the Treasury Gilt
 loan (Aviva)                                                   (all in 7-year rate of 3.21%)
                  Loan to value of 50%


Cape Town
27 October 2021

Sponsor
Investec Bank Limited

Date: 27-10-2021 10:20:00
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