Safestay signs a £1m loan facility with Coutts

29th Apr 2015 11:31

Safestay, the luxury hostel brand, has signed a £1m loan facility with Coutts.The purpose of the loan is to settle £1.024m of loan notes issued to help finance the acquisition of the York hostel purchased by Safestay in 2014.Instead of being due by 23 May 2015, the new loan secured against the Group's York hostel is due over five years with interest at LIBOR plus 3.25%.Westhouse Securities analysts had expected a reduction in interest payments, so it makes no change in their forecast of a 120p target price or their buy recommendation.