First Union Securities and FleetBoston Financial will increase to $425 million a revolver they syndicated for HRPT Properties Trust on a best-efforts basis to raise $400 million. The deal was oversubscribed by $100 million , and although it included an accordion feature that allowed it to extend the size up to $600 million if oversubscribed the banks and the REIT decided to set the line at $425 million, one banker said. "That was adequate capital for the company," he said. The REIT retains the option of expanding the line without lender approval for its full-term. The facility is expected to close in mid-April.
The new line is priced at LIBOR plus 80 basis points with a 20 basis point facility fee. Proceeds of the credit will be used to refinance the real estate investment trust's previous three-year revolver, which was priced at LIBOR plus 75 basis points with a 25 basis point facility fee. Up-front fees started at 45 basis points for a $10 million commitment and are at 65 basis points for a $35 million commitment. The REIT is rated BBB by Standard & Poor's and Baa2 by Moody's Investors Service. [See our Web-site for a list of bank commitments.]