Hines REIT gets $425 million three-year revolver, four-year term loan

By Susanna Moon

Chicago, April 7 - Hines REIT Properties, LP, a majority-owned subsidiary of Hines Real Estate Investment Trust, Inc., obtained a $225 million three-year revolving credit facility and up to $200 million under a four-year term loan.

Interest on the revolving and swing loans will initially be Libor plus 170 basis points, with a spread of 160 bps to 210 bps based on the ratio of debt to total asset value. The revolving loan commitment had an all-in interest rate of 1.86% on the date of the borrowing.

Interest on the term loans initially will be Libor plus 160 bps and will range from 150 bps to 200 bps based on the ratio of debt to total asset value. The term loan commitment had an all-in interest rate of 1.76% on the date of the borrowing.

The company entered into the credit agreement on April 1 with J.P. Morgan Securities LLC and Wells Fargo Securities, LLC as joint bookrunners and joint lead arrangers, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is the administrative agent; Wells Fargo Bank, NA is the syndication agent; and BMO Harris Bank NA, Capital One, NA, PNC Bank, NA, RBS Citizens, NA, Regions Bank, Sumitomo Mitsui Banking Corp., Suntrust Bank and U.S. Bank NA are the co-documentation agents.

The maximum aggregate borrowings under the facility could be increased to up to $725 million.

The revolver has a maturity date of April 1, 2017 with a one-year extension option. The term loan has a maturity date of April 1, 2018.

At closing, the company tapped $170 million under the revolving loan commitment and $200 million under the term loan commitment to repay $370 million of loans outstanding under its acquisition credit agreement with Chase.

The credit agreement limits the company's total debt to 60% of the company's total asset value. The company is required to maintain a pool of at least eight properties that are unencumbered by debt and have an aggregate value of at least $500 million.

Hines is a real estate investment trust based in Houston.

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