Select Income REIT refinances with $1.1 billion revolver, term loan

By Susanna Moon

Chicago, Jan. 12 – Select Income REIT said it refinanced with a $750 million unsecured revolving credit facility due March 29, 2019 and $350 million unsecured term loan due March 31, 2020.

Interest will be Libor plus 105 basis points for revolving loans and Libor plus 115 bps for the term loan based on the REIT’s credit ratings.

The company replaced its $750 million unsecured revolver and $350 million unsecured term loan with new facilities that provide extended maturities and lower interest rates, according to a press release.

The new facilities also include a feature to lift the maximum borrowing capacity to up to $2.2 billion combined, the company noted.

The new revolver includes a one-year extension option.

The previous $750 million revolver had been set to mature on March 11, 2016 with an interest rate of Libor plus 122.5 bps, and the $350 million term loan had been set to mature on July 11, 2017 with interest of Libor plus 140 bps.

Wells Fargo Securities, LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and RBC Capital Markets, LLC are the joint lead arrangers.

Wells Fargo Bank, NA is the administrative agent; Bank of America, NA is a syndication agent; Citibank, NA is a syndication agent; Royal Bank of Canada is a syndication agent; Mizuho Bank, Ltd. is a documentation agent; U.S. Bank NA is a documentation agent; Compass Bank is a documentation agent.

Morgan Stanley Bank, NA, UBS AG, Stamford Branch, PNC Bank, NA, Regions Bank, Branch Banking and Trust Co., First Hawaiian Bank, Associated Bank, NA, Fifth Third Bank, First Tennessee Bank NA, Bank Hapoalim BM are lenders.

Select Income REIT is a real estate investment trust which owns properties that are primarily net leased to single tenants. The company is based in Newton, Mass.

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