TORONTO, Jan. 29, 2013 /CNW/ - KEYreit (TSX: KRE.UN) ("KEYreit" or "the REIT") announced today that the outstanding balance of the IPO Mortgage Loan of $21.8 million will be repaid in full on its maturity date of February 1, 2013. The loan repayment shall be made with the net proceeds from the REIT's previously announced equity offering which closed today.
The IPO Mortgage Loan bore an interest-only rate of 4.9% and was secured by 92 of KEYreit's single-tenant properties across the Provinces of Quebec, Ontario, Manitoba, Alberta and British Columbia.
"The repayment of the IPO Mortgage Loan was the final significant debt maturity facing KEYreit", said Teresa Neto, Chief Financial Officer of KEYreit. "With this repayment, the REIT will realize immediate interest cost savings and more importantly, 92 single-tenant properties with an IFRS-based fair value of over $70 million will become unencumbered. The REIT's unencumbered asset pool will provide the REIT with significant future refinancing flexibility. This loan repayment fulfills part of the REIT's stated objective of lowering its overall leverage as we move forward."
KEYreit (TSX: KRE.UN) is Canada's premier small-box retail property owner with 227 properties in nine provinces across Canada. KEYreit's properties are well located and geographically diverse across Canada with the majority of all properties containing long-term quadruple net leases.
This document contains certain information that may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward looking information may relate to management's future outlook and anticipated events or results, including the refinancing of the REIT's IPO property portfolio. Forward looking-information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from what is currently expected. Such factors include risks relating to KEYreit's reliance on key tenants, risks associated with investment in real property, competition, reliance on key personnel, financing and refinancing risks, distributions, environmental matters, tenant risks, risks related to current economic conditions and other risk factors more particularly described in KEYreit's Annual Information Form for the year ended December 31, 2011. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Other than as required by applicable Canadian securities law, KEYreit does not undertake to update this information at any particular time. Additional information identifying risks and uncertainties is contained in KEYreit's filings with the Canadian securities regulators, available at www.sedar.com.
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