Wednesday, Mission West Properties, Inc. (MSW), engaged in the acquisition, marketing, leasing, and management of research and development properties, said it closed a $115 million financing.
The company said it used the proceeds from the financing to pay-off a loan maturing with Prudential Insurance and other short-term debt.
The company noted that the financing was secured by 20 properties of about 1.6 million sq.ft with various entities of Hartford Insurance Co. Mission West's new loan has a 6.21% fixed annual interest rate, which will be amortized over 20 years. The ten-year loan will mature in October 2018.
Mission West's total debt as of October 1 stands at about $362.2 million. The company noted that its fixed rate mortgage debt represents 95% of the total debt or $342.47 million, with a weighted average interest rate of 5.74%.
Carl Berg, the chairman and chief executive officer of Mission West commented, "We are very pleased with the terms of the refinancing which positions the company well in light of current credit market conditions."
MSW is currently trading up 31 cents or 4.17% at $7.75.
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