U-Store-It lines up $420 million so far towards $450 million facility

New York, Aug. 6 - U-Store-It Trust said it has received $420 million of commitments so far towards its new $450 million credit facility.

Syndication began in early July and is expected to continue through the middle of August.

The Wayne, Pa.-based self-storage real estate investment trust anticipates a final $450 million size made up of a $250 million revolver and a $200 million term loan.

Wells Fargo Securities, LLC and Bank of America Merrill Lynch are lead arrangers.

Pricing will range from 325 to 400 basis points over Libor, depending on leverage, with a Libor floor of 1.5%.

The loan will mature after three years.

Covenants will set a maximum leverage ratio of 67.5% in the first year and 65% after that, a minimum fixed charge coverage ratio of 1.45 times, a minimum tangible net worth covenant, and limitations on permitted investments, dividends and distributions, and the amount of floating-rate interest exposure.

Proceeds will be used to replace its existing $450 million credit facility, which is scheduled to mature on Nov. 20, and to repay a $46 million secured term loan.

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