ARA H-REIT to refinance $370m loan facilities

The company and its subsidiaries underwent amendments in a facility agreement.

Subsidiaries of ARA HREIT will refinance $370m (approximately US$270m) and have reallocated its term loan facilities.

In a statement, the company said its subsidiaries have US$244m ($334m), a three-year term loan facility that expires in 2024, an $11m (US$8.5m), which is a four-year term loan facility that matures in 2024, and $10.9m (US$8m), which is a letter of credit facility maturing in 2024 which are granted pursuant to a facility agreement dated 28 November 2018

But in an amendment and restatement deal dated 26 September 2023, it entered into a facility agreement, the term loan facilities previously granted will be re-allocated and extended into a $271m (US$198m) three-year term loan facility maturing in September 2026 and a $69m (US$51m) term loan facility maturing in September 2027 respectively. 

In addition, a new $41m (US$30m) three-year revolving credit facility maturing in September 2026 will be granted to the Borrowers and the maturity date of the existing $10.9m (US$8m) letter of credit facility will be prolonged to September 2026. 

These amendments will be effective on 29 September 2023 if the conditions precedent are fulfilled.

No prepayment was made but the amendment has a prepayment option:

Should a Prepayment Event occur, the aggregate level of loan facilities (assuming these are drawn in full) and debt securities 1 of ARA H-Trust that may be affected is approximately US$374,500,000 (excluding interest).

$1 = US$0.73