Glimcher amends loan, providing two one-year extension options

By Sara Rosenberg

New York, March 8 - Glimcher Realty Trust amended its credit facility, providing for two one-year extension options, thus allowing for the extension of the maturity date to December 2012, according to an 8-K filed with the Securities and Exchange Commission on Monday.

As part of the amendment, the unsecured facility was converted into a partially secured revolver, and the size was reduced to $370 million from $470 million.

Upon closing on a pending joint venture transaction with the Blackstone Group, the facility will reduce further to $320 million.

Then, on the first extension date, which is Dec. 14, 2010, the revolver will be cut to $300 million, and on the second extension date, which is Dec. 14, 2011, it will reduce to $250 million.

And, on June 30, 2011, the revolver will once again be reduced, this time to $275 million.

Pricing on the amended revolver is Libor plus 400 basis points with a 1.5% Libor floor.

The amendment also modified several covenants, including reducing the minimum fixed-charge and minimum tangible net worth covenants.

The minimum fixed-charge ratio covenant was modified to 1.35:1.0 from 1.50:1.0 with a further reduction to 1.30:1.0 if the company permanently reduces borrowing availability to $350 million or less and either completes $150 million in asset sales or completes the Blackstone joint venture.

The minimum tangible net worth covenant was changed from to $675 million $1 billion.

KayBank is the administrative agent on the deal.

The amendment was completed on March 4.

Glimcher is a Columbus, Ohio-based real estate investment trust.

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