On Monday, Parkway Properties Inc.PKY closed an unsecured term loan worth $200 million. This loan facility will boost the Orlando, FL-based real estate investment trust's ("REIT") financial flexibility as well as aid its expansion plans.
The interest on the term loan, which is slated to mature on Jun 26, 2020, will be determined on the basis of margin over the London Interbank Offered Rate ("LIBOR"). Initially, this margin has been set at 1.35%. Further, the unsecured term loan bears an accordion feature which allows Parkway to raise the size of the loan to a maximum of $400 million. Again, the covenants associated with this unsecured term loan will be almost similar to that of the financial and operating covenants required for an unsecured revolving credit facility.
Parkway is engaged in owning, acquiring, managing, financing and leasing of quality office properties, located at high-growth submarkets in the Sunbelt region of the U.S. As of Apr 1, 2015, Parkway owns or holds interest in 50 office properties spread across 7 states in the country, covering a leasable space of around 17.1 million square feet.
Parkway currently has a Zacks Rank #3 (Hold).
Investors interested in the REIT industry may consider stocks like Arbor Realty Trust Inc. ABR , Strategic Hotels & Resorts, Inc. BEE and CareTrust REIT, Inc. CTRE . While both Arbor Realty Trust and Strategic Hotels & Resorts sport a Zacks Rank #1 (Strong Buy), CareTrust REIT holds a Zacks Rank #2 (Buy).
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