Primary Health Properties (LSE:PHP), the healthcare infrastructure investor with a £6 billion UK and Ireland portfolio, has refinanced existing debt with a new £800 million unsecured club term loan and revolving credit facility across eight banks, including three new lenders.
The facility is structured across three tranches, anchored by a £300 million term loan, each with options to extend by two one-year periods subject to lender consent.
The average credit margin across the tranches is expected to be 40 basis points lower than the facilities being replaced, measured when the group's loan-to-value ratio returns to its target range of 40% to 50%.
PHP will initially draw £500 million, leaving £300 million of undrawn headroom, down from £571 million at 31 December 2025, with proceeds used to retire portions of the £1 billion bridging facility arranged to fund the 2025 Assura acquisition, alongside several secured revolving credit facilities with Barclays, RBS, HSBC, Lloyds and Santander.
"The new facility enhances our capital structure, reduces our cost of capital and supports our wider funding strategy," said CFO Richard Howell, describing the refinancing as an important step toward PHP becoming a fully unsecured borrower.
The remaining balance of the Assura bridging facility will be addressed through further deleveraging initiatives, which PHP said it expects to complete in due course.
