Hotel investment company Temple Hotels Inc. secured a new credit facility with diversified real estate company Morguard Corp. worth C$35 million.

The credit facility will run for a three-year term and bears interest at 6.5% per annum.

The proceeds of the facility will be used to repay its series F convertible unsecured subordinated debentures due March 31.

Morguard owns a 55.9% stake in Temple.