HRPT Properties Trust on Friday said it completed a new mortgage financing for $175 million, and plans to use the proceeds to reduce outstanding debt under its revolving bank credit facility.
The 10-year loan is secured by one of the real estate investment trust's properties in Philadelphia. Interest is payable at a spread over LIBOR, a benchmark often used for setting interest rates. The company said the rate has been fixed for the first seven years of the loan at 5.66 percent using a simultaneous hedge transaction, a strategy used to reduce risk. The loan may be prepaid without penalty.
The loan and related interest rate hedge were provided by PB Capital Corp. and its affiliates, and Westdeutsche ImmobilienBank AG.
In morning trading, HRPT shares rose 18 cents to $6.37.