Nuveen Global Cities REIT expands credit facility to $335 million

By Marisa Wong

Los Angeles, Oct. 6 – Nuveen Global Cities REIT OP, LP, a wholly owned subsidiary of Nuveen Global Cities REIT, Inc., amended its credit agreement dated Oct. 24, 2018 with Wells Fargo Bank, NA as administrative agent and Wells Fargo Securities, LLC as lead arranger and bookrunner to increase commitments to $335 million, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement originally provided commitments of up to $60 million with an up to $500 million accordion option. Commitments were later increased to $150 million and then to $210 million under amendments completed on Dec. 17, 2018 and June 11, 2019, respectively.

The amended credit facility is comprised of a $235 million revolver and an up to $100 million senior delayed-draw term loan.

Loans under the delayed-draw term loan may be borrowed in up to three advances, each in a minimum amount of $30 million.

The revolver will terminate on Sept. 30, 2024, with two additional one-year extension options, subject to an extension fee of 0.125%.

The term loan will mature on Sept. 30, 2026.

Revolving loans bear interest at adjusted Libor plus an applicable margin ranging from 130 basis points to 190 bps, depending on the company’s total leverage ratio.

Term loans bear interest at adjusted Libor plus 125 bps to 185 bps, based on the total leverage ratio.

There is an unused fee of 15 bps if usage is greater than or equal to 50% of the aggregate commitments and 25 bps if usage is less than 50%.

There is a ticking fee on the term loan equal to 0.15% of the undisbursed portion. An upfront fee of 40 bps was payable at closing.

The credit agreement contains financial covenants relating to minimum net asset value, leverage ratio, fixed-charge coverage ratio, secured indebtedness, secured resource indebtedness, unsecured leverage ratio, unsecured interest coverage ratio and balance sheet debt yield.

The real estate investment trust company is based in New York.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.