TORONTO, ONTARIO–(Marketwire – Aug. 24, 2010) – InnVest Real Estate Investment Trust (“InnVest”) (TSX:INN.UN) announced today that it has successfully completed the early one-year extension of a mortgage originally scheduled to mature in February 2011. As part of the early refinancing, InnVest repaid $95.0 million of mortgage principal plus yield maintenance and other fees which was funded by cash on hand. The remaining mortgage balance of $174.2 million, secured by 7 full service hotels, is due February 28, 2012 and includes one additional one-year extension, at the Trust’s option, subject to certain minimum thresholds at the time of maturity. This early renewal enables the Trust to secure its one-year extension interest rate beginning February 28, 2011 at the then one-year Composite Swap Rate plus 1.85%. Currently, this interest rate would approximate 3.2%.
“We have always been proactive in addressing upcoming debt maturities as demonstrated by today’s early renewal and the recently announced early redemption of our Series A convertible debentures. These initiatives have enabled us to extend near-term debt at attractive interest rates while also reducing our overall portfolio leverage,” commented Kenneth Gibson, InnVest’s President and Chief Executive Officer. “Following this early renewal, InnVest has no debt maturities until September 2011.”
InnVest REIT holds Canada’s largest hotel portfolio together with an interest in Choice Hotels Canada Inc. the largest franchisor of hotels in Canada. The hotel portfolio currently comprises 144 hotel properties, with approximately 19,000 guest rooms, operated under internationally recognized franchise brands such as Comfort Inn®, Holiday Inn®, Quality Suites/Inn®, Radisson®, Delta®, Travelodge®, Hilton® Staybridge Suites®, Fairmont Hotels®, Sheraton Suites® and Best Western®. InnVest’s trust units and outstanding convertible debentures trade on the Toronto Stock Exchange under the symbols INN.UN, INN.DB.A, INN.DB.B, INN.DB.C, INN.DB.D, and INN.DB.E respectively.