Cogdell Spencer plans $250 million credit facility for Marshall Erdman purchase

By Sara Rosenberg

New York, Jan. 29 - Cogdell Spencer Inc. is planning on getting a new $250 million credit facility to help fund its acquisition of Marshall Erdman and Associates, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

The facility consists of a $150 million three-year amended and restated revolver at the Cogdell level and a $100 million three-year senior secured senior term loan at the taxable REIT subsidiary level.

Bank of America is the lead bank on the line of credit, with participation from KeyBank, Branch Banking and Trust Co., M&I Marshall & Ilsley Bank and Wachovia Bank.

KeyBank is the lead bank on the term loan, with participation from Bank of America, Branch Banking and Trust Co., M&I Marshall & Ilsley Bank and Wachovia Bank.

The term loan has a one-year extension option.

Financial covenants include a maximum total leverage ratio, a maximum real estate leverage ratio, a minimum fixed-charge coverage ratio and minimum consolidated tangible net worth.

Cogdell is buying Marshall for $247 million, subject to adjustment.

The transaction is expected to close by the end of February.

Cogdell is a Charlotte, N.C., real estate investment trust that focuses on specialty office buildings for the medical profession. Marshall is a Madison, Wis., design-build firm that specializes in the advance planning, designing and building of health care facilities.

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