Minto Apartment REIT Announces Extension of Fifth + Bank Option to Purchase and Convertible Development Loan

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[{"type":"text","content":"\n \n \n \n Minto Apartment REIT Announces Extension of Fifth + Bank Option to Purchase and Convertible Development Loan\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n — Convertible development loan coupon also adjusted —\n \n \n \n \n \n OTTAWA, ON\n \n \n ,\n \n \n March 23, 2023\n \n \n /CNW/ - Minto Apartment Real Estate Investment Trust (the \"REIT\") (TSX: MI.UN) today announced that Minto Properties Inc. (\"MPI\") has agreed to extend the outside date for the REIT's option to purchase Fifth + Bank to\n \n December 31, 2023\n \n (previously\n \n June 30, 2023\n \n ) and to extend the maturity date of the convertible development loan related to Fifth + Bank (the \"CDL\") until\n \n January 31, 2024\n \n (previously\n \n July 31, 2023\n \n ).\n \n \n \n \n \n \n \n \n \n In addition, MPI has agreed to amend the coupon payable under the CDL commencing\n \n July 1, 2023\n \n to be equal to the all-in interest rate the REIT pays from time to time for its revolving credit facility (the \"Credit Facility\"), subject to a maximum interest rate payable of 7% per annum and a minimum interest rate payable of 5% per annum.  Currently, the CDL coupon is 6% per annum and the REIT's cost on its Credit Facility is approximately 6.68% per annum.\n \n \n \"MPI continues to work collaboratively with the REIT on these amendments,\" said\n \n Jonathan Li\n \n , the REIT's incoming Chief Executive Officer. \"The extension of the purchase option provides the REIT with further optionality to purchase an attractive asset and the amendment to the CDL coupon means that the CDL coupon will be equal to the current cost of capital on the REIT's Credit Facility.\"\n \n \n Fifth + Bank is a newly constructed, 163-suite mixed-use multi-residential rental and retail property located at 99 Fifth Avenue in the Glebe neighbourhood of\n \n Ottawa\n \n , Ontario.  The REIT has the exclusive option to purchase the property at 95% of its then-appraised fair market value as determined by independent and q...

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