Beverly Hills 12/5/2009 1:21:05 AM
News / Business

HRPT Properties Closes on $175 Million Mortgage Deal

Finance World News Update by EQUITIES Magazine

Today HRPT Properties Trust announced the completion of a new mortgage financing for $175 million. The company intends to use the proceeds to reduce outstanding debt under its revolving bank credit facility.

 

Interest is payable at a spread over LIBOR for the 10-year loan secured by one of the real estate investment trust’s Philadelphia properties. The company said the rate has been fixed for the initial seven years of the loan at 5.66 percent using a risk-averse strategy called simultaneous hedge transaction. The loan may be prepaid without penalty.

 

Westdeutsche ImmobilienBank AG, PB Capital Corp and its affiliates provided the related interest rate hedge and loan.

 

HRPT shares rose 18 cents to $6.37 in morning trading. 

 

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