RE:RE:RE:RE:RE:RE:RE:RE:Lots of liquidity!AvInvestor wrote:
Let me turn this over to you now. Go to section 10 under debt, and there you will find that they owe $362.5M next FEB 2021. Please, explain to me under the current circumstances how they will be able to meet that.
Did you miss this NR? I believe the term you used was "lol".
2020-02-24 11:01 ET - News Release
Mr. David Dunn reports
SLATE RETAIL REIT COMPLETES $858 MILLION DEBT REFINANCING
Slate Retail REIT has completed the refinancing of a $525-million revolving credit facility and term loan. The REIT has also reduced pricing for its $250-million term loan and entered into a commitment for an $83-million 10-year mortgage.
"By securing attractive debt for our portfolio, we significantly extend term, provide interest rate savings and achieve continued flexibility in our management of the balance sheet," said David Dunn, the REIT's chief operating officer, who was previously named as the REIT's next chief executive officer effective March 12, 2020. "We appreciate our debt capital partners and are pleased that the strong demand and terms we received reflect the portfolio's size and quality."
"Extending Slate Retail's debt maturity at a reduced cost positions us to capitalize on a robust pipeline of acquisition opportunities for high-quality, grocery-anchored centres across the United States, which are below replacement cost," said Andrew Agatep, the REIT's chief financial officer.
Overall impact:
Achieves $858-million in total debt refinancing;
Secures annualized interest savings of $1.7-million or four cents per Class U equivalent unit;
Extends weighted average debt maturity to 4.8 years;
After closing the $83-million mortgage, the REIT expects to have approximately $212-million of borrowing capacity on its revolving credit facility;
Supports the REIT's growth initiatives through improved covenant packages.
$525-million revolving credit facility and term loan:
Refinanced the REIT's existing revolving credit facility and term loan for four- and five-year terms, respectively, for an aggregate of $525-million;
Revolving credit facility has two six-month extensions at the REIT's option;
Reduced pricing on the revolving credit facility and term loan by 15 and 25 basis points, respectively;
Received significant demand from the lender syndicate exceeding the REIT's required amount.
$250-million term loan amendment:
Reduced pricing on the REIT's $250-million term loan, due in 2023, by 25 basis points;
Enhanced the existing covenant package to align with the REIT's refinanced revolving credit facility and term loan.
$83-million mortgage:
Entered into a commitment for an $83-million mortgage loan at 3.48 per cent, subject to customary closing conditions;
10-year term with a 30-year amortization;
Secured by a pool of eight properties and is non-recourse to the REIT;
The REIT expects to close this mortgage in the first quarter of 2020;
Proceeds will be used to reduce borrowings on the REIT's revolving credit facility.
About Slate Retail REIT
Slate Retail is a real estate investment trust focused on U.S. grocery-anchored real estate.