Lifestyle Communities secures new long-term debt facilities

Lifestyle Communities Limited (ASX:LIC) has finalized new debt arrangements, comprising an A$300.0 million Note Purchase and Private Shelf Facility and an A$125.0 million Revolving Bank Debt Facility. The Note Purchase and Private Shelf Facility, provided by PGIM Inc., has an initial issuance of A$250.0 million with a weighted average tenor of 6.75 years. The Revolving Bank Debt Facility, from National Australia Bank Limited (NAB), has a 3-year tenor.

These new facilities simplify the company's financing structure and provide longer tenor, with no Interest Cover Ratio (ICR) covenant until the 30 June 2028 reporting period. At the refinancing's effective date, A$250.0 million of notes will be issued, with maturities in January 2032 (A$62.5 million) and January 2033 (A$187.5 million). The A$125.0 million NAB Revolving Bank Debt Facility will be largely drawn down to provide financial flexibility until its January 2029 maturity.

The restructuring also amends the Loan to Value Ratio (LVR) covenant, reducing it from ≤ 65% to ≤ 55% until 31 December 2027, before stepping up to ≤ 65% from 30 June 2028. Drawdown of the new facilities is expected by mid-January 2026.