Glimcher extends revolver, lowers interest rate, increases accordion

By Angela McDaniels

Tacoma, Wash., Oct. 17 - Glimcher Realty Trust's operating partnership, Glimcher Properties LP, amended its $250 million revolving credit facility, extending the maturity date to Oct. 12, 2014 from Dec. 14, 2011.

The company has the option to extend the maturity by an additional year to October 2015 subject to a 0.25% extension fee, according to an 8-K filing with the Securities and Exchange Commission.

Following the amendment, the company can increase the revolver's total borrowing availability to $400 million by providing additional collateral, adding new lenders or getting increased commitments from the existing lenders. Before the amendment, the cap was $300 million.

The interest rate was lowered to Libor plus 237.5 basis points from Libor plus 350 bps, according to the filing. The rate is subject to further adjustment based on the company's ratio of consolidated debt to total asset value.

The commitment fee was lowered to 30 bps from 40 bps.

According to the filing, the amendment also

• Gives the company pre-approval to add Colonial Park Mall and Ashland Town Center to the facility's current collateral pool, at the company's discretion. The addition of Ashland Town Center would require the release of Polaris Towne Center from the collateral pool;

• Revises some property valuation, leverage and debt service coverage thresholds and terms;

• Establishes criteria and conditions in which certain properties can be released as facility collateral;

• Lowers the consolidated debt-to-total asset value ratio covenant to 60% from 65%;

• Increases the minimum tangible net worth covenant to $1 billion from $800 million;

• Reduces the maximum recourse debt limitation to 12.5% of the company's total asset value from 15%. It will be further reduced to 10% on Sept. 30, 2013; and

• Increases the limitation on the aggregate value of certain investments or transactions the company is permitted to make to 35% of the company's total asset value from 30% and, within that limitation, the restriction on joint venture transactions to 30% of the company's total asset value from 25%.

The amendment was completed on Wednesday. The company had $102 million of borrowings outstanding under the revolver.

KeyBank, NA is the administrative agent. Bank of America, NA and Wells Fargo Bank, NA are the syndication agents. U.S. Bank NA and Huntington National Bank are the documentation agents. Goldman Sachs Bank USA and PNC Bank, NA are additional signatories.

The loan is guaranteed by Glimcher Realty, a Columbus, Ohio-based real estate investment trust with a focus on malls.

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