EastGroup closes on $80 million term loan priced at Libor plus 190 bps

By Marisa Wong

Madison, Wis., Aug. 31 - EastGroup Properties, Inc. said it obtained an $80 million six-year term loan on Friday.

The interest rate was set equal to Libor plus 190 basis points, subject to a pricing grid for changes in the company's leverage or credit ratings.

The company said it entered into an interest rate swap to convert the loan's Libor rate to a fixed rate, providing an effective fixed rate of 2.92% as of closing.

The company plans to use proceeds to reduce its variable-rate bank borrowings.

EastGroup is a real estate investment trust based in Jackson, Miss.

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