In a company statement, REO chairman Ray Horney states that, "The loan will be used to replace existing borrowings, driving down costs while also freeing up cash. This is an innovative transaction that will allow REO to make substantial annual interest savings estimated at euro 2.8 million ($3.39 million), while freeing up cash. The deal will also allow us to pursue further expansion opportunities in the real estate markets in Ireland and elsewhere."
The euro 375-million ($454-million) loan will be financed through the issue by Opera Finance plc of CMBS. The issue will consist of four tranches, expected to be rated by Fitch and Standard & Poor's.
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