Parkway Life Reit secures two credit facilities worth S$207m

Healthcare trust Parkway Life Reit (P-Life Reit) said it has entered into two agreements for credit facilities of up to S$207 million.

It has secured a four-year committed term loan facility for S$103.5 million and another five-year committed term loan facility for the same amount.

The firm intends to use the funds to refinance an existing S$207 million facility which will fall due in the second half of next year.

With the refinancing of this loan, which constitutes approximately 46 per cent of its total outstanding loan, P-Life REIT said it will have no refinancing requirement for its existing debt portfolio until Financial Year 2013.

This serves to effectively eliminate its near term refinancing risks and lengthen its weighted average debt maturity period from 2.87 years to 4.37 years.

CEO Yong Yean Chau said market uncertainties remain and the trust decided to seize the opportunity to pare down its short term debts and strengthen its financial position while market conditions are favourable.

Source : Channel NewsAsia – 16 Aug 2010