Select Income REIT (NYSE: SIR) today announced the closing of a new five year $350 million unsecured term loan. The loan matures on July 11, 2017, and is prepayable, without penalty, at any time. Terms of the loan include interest at LIBOR plus 155 basis points, subject to adjustments based on changes to SIR’s leverage. SIR expects to use the net proceeds of the term loan to repay amounts outstanding under its $500 million revolving credit facility and to fund general business activities, including possible future acquisitions.
Wells Fargo Securities, LLC, Citigroup Global Markets, Inc. and RBC Capital Markets, LLC served as Joint Lead Arrangers for the term loan, and banks participating in the new loan are as follows:
Name of Institution
|Wells Fargo Bank, National Association||Administrative Agent|
|Citibank, N.A.||Syndication Agent|
|Royal Bank of Canada||Syndication Agent|
|Mizuho Corporate Bank, Ltd.||Documentation Agent|
|RBS Citizens, N.A.||Documentation Agent|
|Bank of America, N.A.||Participant|
|Branch Banking and Trust Company||Participant|
|Morgan Stanley Bank, N.A.||Participant|
|UBS Loan Finance LLC||Participant|
|PNC Bank, National Association||Participant|
|US Bank National Association||Participant|
|Chang Hwa Commercial Bank Ltd.||Participant|
Select Income REIT is a real estate investment trust, or REIT, which owns properties that are primarily net leased to single tenants. As of March 31, 2012, SIR owned 251 properties with a total of approximately 21.4 million square feet located in 14 states, including 228 properties with approximately 17.8 million square feet which are primarily leasable industrial and commercial land located in Oahu, Hawaii. SIR is headquartered in Newton, MA.