FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / Press Releases / Read Press Release


Bank of Montreal Provides $200MM Facility to H&R REIT

March 18, 2016, 07:34 AM
Filed Under: Real Estate

H&R Real Estate Investment Trust ("H&R REIT") announced that it has entered into a new senior unsecured credit facility for up to $200 million with Bank of Montreal, available on a non-revolving basis, maturing March 17, 2021 with no scheduled principal repayments prior to maturity. The credit facility will bear interest at a floating rate of CDOR or LIBOR plus 1.2% per year. H&R REIT has immediately drawn down U.S.$140 million and C$18.2 million on the credit facility to repay other revolving credit facilities.

H&R REIT also announced that it has entered into interest rate swap agreements which effectively fix the interest rate on:

 (i) U.S.$130 million of the U.S. dollar portion of the credit facility draw down at 2.56% per annum; (ii) the $60 million floating rate Series I Senior Debentures maturing in January 2017 at 2.54% per annum; (iii) the U.S. $125.0 million floating rate Series J Senior Debentures maturing in February 2018 at 2.04% per annum; and (iv) the $200 million floating rate Series K Senior Debentures maturing in March 2019 at 2.36% per annum (collectively, the "Senior Debentures").

Such interest rate swap agreements are intended to limit H&R REIT's interest rate exposure during the respective terms of the credit facility and the senior debentures.

H&R REIT is Canada's largest diversified real estate investment trust with total assets of approximately $14.0 billion as at December 31, 2015. H&R REIT is a fully internalized real estate investment trust and has ownership interests in a North American portfolio of high quality office, retail, industrial and residential properties comprising over 47 million square feet.

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.