CHC Student Housing Announces Refinancings

About this update from Halmont Properties Corporation Class A

[{"type":"text","content":"CHC Student Housing Announces RefinancingsToronto, Ontario--(Newsfile Corp. - July 13, 2018) - CHC Student Housing Corp. (TSXV: CHC) (\"CHC\" or the \"Company\") is pleased to announce the closing of refinancing transactions on its properties in London, Ontario and Trois-Rivières, Québec.Under the London, Ontario property refinancing, an arm's length third party has assumed the existing $33.0 million first mortgage on the property, and the first mortgage has been amended to bear interest at a rate of 90 day Bankers Acceptances plus 2.55% (currently 1.85% for a total interest rate of 4.4%), and to have a maturity date of June 30, 2021. Halmont Properties Corporation (\"Halmont\") (TSXV: HMT), also an arm's length third party, has assumed the existing $13.75 million second mortgage on the property, and the second mortgage has been amended to have the principal amount of $14.0 million, to bear interest at a rate of 7%, subject to a right for CHC to defer certain interest payments for a period of 18 months, and to have a maturity date of June 30, 2021. Halmont also has a right under the second mortgage to an additional payment based on growth in net operating income from the property above an agreed threshold during the term of the loan or in the event the property is sold for a value in excess of an agreed value. Proceeds of the refinancing were used to payout the existing first and second mortgage lenders in the aggregate amount of $46.75 million and to pay transaction costs. CHC's obligations to the lenders under the mortgages is also secured by a second charge over CHC's student housing property in Trois-Rivières, Québec, and a first charge over all of CHC's personal property. In connection with the refinancing transaction on the London property, CHC will issue to Halmont 200,000 non-transferable common share purchase warrants (the \"Loan Warrants\"), each of which will be exercisable to acquire one common share of CHC at an exercise price $2.00 per share until June 30, 2021. The issuance of the Loan Warrants is subject to the approval of the TSX Venture Exchange.Under the Trois-Rivières, Québec refinancing, an arm's length third party has assumed the existing $2.175 million mortgage on the property, and the mortgage has been amended to have the principal amount of $2.57 million, to bear interest at...

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