Landmark Apartment Trust gets $130 million credit facility via BofA

By Toni Weeks

San Luis Obispo, Calif., March 13 - Landmark Apartment Trust of America, Inc. operating partnership Landmark Apartment Trust of America Holdings, LP obtained a secured $130 million credit facility on March 7 with Bank of America, NA as administrative agent, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The credit facility is evidenced by two promissory notes, each in the principal amount of $65 million. The available amount may be increased by up to $50 million, subject to certain terms and conditions.

The amount available to borrow is based on the lesser of the aggregate commitments of all lenders and a percentage of the appraised value for all collateral properties. The agreement allows multiple term loan draws, which are available to be drawn only for six months following the closing date. As of March 7, three of the company's properties were pledged as collateral under the agreement, and the company drew $17,411,000 under the facility. This initial mount of available credit will increase if the borrower adds additional properties as collateral to secure the facility.

The agreement matures March 7, 2015 and may be extended by one year under some conditions.

Borrowings bear interest at Libor plus 250 basis points to 275 bps, with the margin based on the company's debt yield.

The credit agreement contains representations, warranties, covenants, terms and conditions customary for this type of transactions, including a maximum leverage ratio, a minimum fixed-charge coverage ratio, limitations on liens and the incurrence of debt, investments, mergers and asset dispositions, among others.

Proceeds may be used for general corporate purposes, including the refinancing of existing debt on some of the company's properties.

Citibank, NA is the syndication agent. BofA Merrill Lynch and Citigroup Global Markets Inc. are the joint lead arrangers and joint bookrunners.

The real estate investment trust focuses on acquiring and managing multi-family apartment communities in the United States and is based in Richmond, Va.

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