Financial update Oct.20,2020 TORONTO, Oct. 20, 2020 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) today has provided an update on its recent financing activities.
Approximately $250 million of the REIT's $350 million non-revolving bridge loan has been repaid through proceeds from the REIT's recent offering of $250 million 5-year 2.15% Series A senior unsecured debentures. The remaining balance of $100 million on the bridge facility, which was arranged last year to facilitate certain acquisitions, has been extended for one year on the same terms and conditions, to November 2021 to provide the REIT with additional financing flexibility.
In addition, approximately $30.5 million of new ten-year secured mortgage financing has been placed on four of the REIT's unencumbered properties at an average interest rate of 2.9%. This results in an increase to the REIT's average debt term to maturity to 5.9 years. Proceeds from the new mortgage financing have been used to repay part of the REIT's unsecured revolving credit facility. The resulting balance available to be drawn on the REIT's unsecured revolving credit facility is approximately $168 million.
"We continue to capitalize on attractive financing opportunities to ensure that the REIT has the capacity and flexibility to execute on our strategy of portfolio growth and maintaining our track record of generating unitholder value over the long term," commented Paul Dykeman, Chief Executive Officer. "In addition to our strong liquidity profile, we are pleased that our leverage ratio remains conservative at approximately 43%, while our pool of unencumbered assets has grown to over $1.0 billion."