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Retail Properties Of America Inc. Closes $1.1B Unsecured Credit Facility

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Retail Properties of America Inc. has closed on a $1.1 billion amended and restated unsecured credit facility. Retail Properties of America Inc. is a REIT that owns and operates high quality, strategically located shopping centers in the United States. As of December 31, 2017, the company owned 112 retail operating properties representing 20.3 million square feet.

Wells Fargo Securities, LLC, KeyBanc Capital Markets Inc., U.S. Bank National Association, PNC Capital Markets LLC, Capital One, National Association and Regions Capital Markets served as co-lead arrangers, with KeyBank National Association serving as administrative agent and Wells Fargo Bank, National Association serving as syndication agent. U.S. Bank National Association, PNC Capital Markets LLC, Regions Bank, Capital One, National Association, Bank of America, N.A., Citibank, N.A., The Bank of Nova Scotia, TD Bank, N.A. and Morgan Stanley Senior Funding, Inc. are serving as documentation agents.

According to a prepared statement, the 2018 Unsecured Credit Facility was amended and restated as follows:

  • $850 Million Unsecured Revolving Line of Credit
  • Increased the capacity on the existing unsecured revolver by $100 million to $850 million;
  • Set pricing, which is based on the Company’s leverage, at LIBOR plus 105 basis points, a 30 basis point improvement from the previous rate;
  • Extended the maturity date to April 22, 2022 from January 5, 2020; and
  • Retained two six-month extension options.
  • $250 Million Unsecured Term Loan Due 2021
  • Set pricing, which is based on the Company’s leverage, at LIBOR plus 120 basis points, a 10 basis point improvement from the previous rate; and
  • Retained the maturity date of January 5, 2021.
  • $100 Million Unsecured Term Loan Due 2018
  • Repaid the remaining $100 million unsecured term loan that matures on May 11, 2018.

In recognition of the completion of the Company’s portfolio transformation and its improved portfolio quality, the capitalization rate used to calculate certain financial covenants under the 2018 Unsecured Credit Facility was set at 6.50%, a 25 basis point improvement from the previous rate.