Three REITs Take On Debt

A trio of real estate investment trusts have separately entered into different kinds of debt transactions, and Wells Fargo is providing the financing in two of them.

First, an affiliate of NorthStar Realty Finance Corp. is doing a private offering of $300 million in exchangeable senior notes due 2033. There is an over-allotment option for an additional $45 million.

The notes are exchangeable for cash, share of NorthStar common stock or a combination of both. Proceeds will be used to make investments, including the purchase of limited partnership interests in up to 25 real estate private equity funds.

Parkway Properties Inc. has closed on a $120 million unsecured term loan from Wells Fargo Bank, which has an accordion feature which can expand it to $250 million.

The loan matures on June 11, 2018. Interest is initially set at Libor plus 145 basis points.

Parkway also executed a floating-to-fixed interest rate swap totaling $120 million. This locks the rate at Libor plus 161 bps and resulting in an all-in interest rate of 306 bps.

Blackstone Mortgage Trust revealed on an 8-k filing obtained through DisclosureNet.com that it entered into a repurchase agreement with Wells Fargo which provides for an advance of $250 million. Those funds will be used to finance the origination of a mortgage secured by an office portfolio located on the West Coast.

Advances have an interest rate of Libor plus 250 bps. The initial maturity date is June 7, 2016, but there are extension options in the contract.