PREIT Hedges Rates on $150M More of Future Debt

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PHILADELPHIA-Pennsylvania Real Estate Investment Trust has entered into interest-rate swap agreements in the amount of $150 million to hedge the expected interest payment on a portion of anticipated future long-term debt. The locally based retail REIT entered into similar agreements for $370 million in the middle of 2005. Today’s agreements hedge the remaining portion of refinancing scheduled to take place in 2008, says Robert McCadden, EVP and CFO. “Short-term and long-term rates are even closer together now than they were last year,” he tells GlobeSt.com, “which makes conditions for the swap agreements even more favorable.”