Arlington Investors refinances debt used to acquire UK student accommodation portfolio

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Arlington Investors has refinanced short-term bank debt used to finance the acquisition of two student accommodation assets acquired within a portfolio in December 2017, from Study Inn. The portfolio consists of 1,494 student bedrooms in ten buildings across four sites in Cambridge, Sheffield, Coventry and Nottingham, in England.

Senior debt of over GBP100 million (US$131.4 million) was arranged at the time of the acquisition through a combination of short-term bank debt and long-term secured bond funding.

Arlington has now refinanced GBP28 million (US$36.8 million) of short-term debt used to finance assets in Cambridge and Sheffield, through a tap of the existing bond issue that was used to finance the eight other assets in the portfolio.

The latest GBP32 million (US$42.1 million) issuance of 37-year fully-amortising fixed and inflation-linked bonds enables the entire Study Inn portfolio to benefit from long-term financing. Arlington received financial advice and modelling services from DWPF.

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