Alpha Pyrenees Trust has reached an agreement with its bankers to remove the loan-to-value covenant tests on its loans for both its French and Spanish portfolios until February 2014 and to extend the term of the Spanish loan to February 2015.
Alpha Pyrenees Trust has reached an agreement with its bankers to remove the loan-to-value covenant tests on its loans for both its French and Spanish portfolios until February 2014 and to extend the term of the Spanish loan to February 2015.
The Guernsey-registered closed-end investment company invests predominantly in French and, to a lesser extent, Spanish commercial real estate. The firm said it had agreed with its lenders that there will be no LTV covenant tests on any of the Trust's properties until February 2014 (previously February 2010 on Spain, February 2012 on France and annually on the Alcatel-Lucent property).
The LTV covenant at the next testing date in 2014 remains the same, namely that this should not exceed 87.5% on a country portfolio basis. Within the French portfolio test, the Alcatel-Lucent property should not exceed 85%.
The maturity of the Spanish loan has been extended by two years to February 2015 (previously February 2013) and brings it into line with the maturity of the French loan. The trust said this affords the flexibility to benefit from a gradual recovery in Spanish property values in the medium term.
