Lok'nStore agrees new £75m facility to fund new store development

Self storage provider Lok'nStore announced the agreement of a new £75m five-year revolving credit facility on Thursday, which would replace its existing £50m facility and provide funding for site acquisitions and development, to support the group's growth plans.

The AIM-traded company said the facility was a combined agreement with Lloyds Bank and the Royal Bank of Scotland, and would run until 2024.

It said it was “closely aligned” to the terms of its previous facility.

The facility also provided for a £25m accordion uplift to £100m, which would run to 2024, with an extension option for a further two one-year extensions.

Lok’nStore said the interest rate was set at LIBOR plus a margin of between 1.50% and 1.75%, based on a loan-to-value covenant test.

There were no additional bank financial covenants in the new facility, the board said, which would provide increased flexibility to invest in new store development.

“This new, substantially larger, banking facility underlines the financial strength of Lok'nStore with its modest gearing, valuable property assets and strong and growing cash flow,” said Lok’nStore chief executive officer Andrew Jacobs.

“[It] will enable the group to continue to execute its current growth strategy.”

Lok'nStore said it would announce its preliminary interim results for the six months ended January on 29 April.