TORONTO, ONTARIO--(Marketwired - Oct 9, 2013) - InnVest Real Estate Investment Trust ("InnVest") (TSX:INN.UN) announced today that it has completed the refinancing of a $183.8 million mortgage for a 67-month term through May 2019, with two additional one-year renewal options through May 2021. The mortgage, secured by 42 properties, will carry its existing weighted average interest rate of 6.0% through May 2014 (the original maturity date) and approximately 5.1% thereafter. In conjunction with this refinancing, InnVest will have access to a loan facility (which replaces its existing facility) for up to $30.0 million to fund capital expenditures.
Management has also entered into a separate agreement to refinance the Sheraton Eau Claire, Calgary for $68.0 million at a fixed interest rate of 5.33% for a 10-year term. Incremental proceeds of $36.4 million from the refinancing will be used to partially repay a $45.4 million mortgage maturity in April 2014 (secured by 10 properties, two of which are classified as held for sale). The Sheraton Eau Claire refinancing is expected to close in early January 2014.
Following the completion of these refinancing transactions, InnVest will have a weighted average mortgage interest rate of approximately 5.4% with no material mortgage maturities until July 2015.
InnVest is an unincorporated open-ended real estate investment trust which owns a portfolio of 131 hotels across Canada representing over 16,500 guest rooms operated under internationally recognized brands. InnVest also holds a 50% interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada.
InnVest's units and convertible debentures trade on the Toronto Stock Exchange (the "TSX") under the symbols INN.UN, INN.DB.C, INN.DB.D, INN.DB.E, INN.DB.F and INN.DB.G.