Simultaneous with closing of the IPO, SIR entered into a $500.0 million revolving credit facility that is available for general business purposes, including acquisitions. Interest under the revolving credit facility is calculated at floating rates based upon LIBOR plus a premium that varies depending upon SIR’s leverage and credit rating. The revolving credit facility has a maturity date of March 11, 2016 and provides SIR an option to extend the maturity date for one year, subject to payment of an extension fee and meeting certain conditions. As of March 31, 2012, SIR had $227.0 million drawn and $273.0 million of borrowing capacity under the revolving credit facility.SIR used the net proceeds from its IPO and drawings under its revolving credit facility to repay a $400.0 million demand note to CWH. The demand note was issued to CWH on February 16, 2012 as partial consideration for the contribution of 251 properties to SIR by CWH.
Select Income REIT Announces 2012 First Quarter Results
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