Glimcher converts revolver to unsecured, extends maturity, cuts pricing, obtains secured loan

By Marisa Wong

Madison, Wis., Feb. 25 - Glimcher Properties LP, an affiliate of Glimcher Realty Trust, amended and restated its amended and restated credit agreement dated Dec. 14, 2006 to convert the existing revolving credit facility from a secured facility to an unsecured facility, according to an 8-K filing with the Securities and Exchange Commission.

The amendment releases existing liens on some properties owned by Glimcher Properties that currently serve as collateral for the loan.

Glimcher Properties also extended the facility's maturity date to Feb. 20, 2017 from Oct. 12, 2014 with an option to extend the maturity date by an additional year to Feb. 20, 2018. If the company exercises the extension option it must pay a 25 bps extension fee.

In addition, the interest rate range was lowered to Libor plus 165 basis points from Libor plus 225 bps, with the margin based on the ratio of total indebtedness to total asset value.

The company also made changes to some financial covenants under the facility.

Under the restated credit agreement, if Glimcher Properties fails to repay the outstanding amount of another credit facility, then lenders will take a pledge of equity interests in a pool of unencumbered assets consisting of six shopping centers, two community centers and some outparcels; the Libor spread will increase by 35 bps; and the one-year extension option will be eliminated.

According to the filing, availability remains at $250 million and the company can still increase the facility up to $400 million.

As of Feb. 20, the effective date of the amendment, the amount of borrowings outstanding was about $34 million.

The filing noted that Glimcher Properties paid roughly $1.8 million in amendment fees.

The fourth amended and restated agreement was completed with KeyBank NA as administrative agent, Bank of America, NA and Wells Fargo Bank, NA as a co-syndication agents, U.S. Bank NA, PNC Bank, NA and Huntington National Bank as co-documentation agents and Raymond James Bank, NA, Goldman Sachs Bank USA and Fifth Third Bank as additional signatories.

Secured line of credit

According to the 8-K, Glimcher Properties also executed a secured line of credit loan agreement on Feb. 20 with KeyBank as administrative agent, Bank of America and Wells Fargo as a co-syndication agents, U.S. Bank, PNC and Huntington as co-documentation agents, along with Goldman and Fifth Third, as signatories.

The agreement provides Glimcher Properties with a fully funded $45 million secured line of credit facility.

The secured facility matures on the earlier of May 19, 2014, and the date all or any part of the existing mortgage loan secured by the Outlet Collection: Jersey Gardens is repaid.

The company will make interest only payments during the term of the secured facility but may make optional prepayments under specific conditions.

Interest is equal to Libor plus 250 bps.

Collateral for the loan consists of the assignment of membership interests in three limited liability companies and of the partnership interest in one limited partnership, all four of which are Glimcher Properties affiliates and separately hold title to four different regional enclosed shopping malls within Glimcher Properties' real estate portfolio.

The company paid roughly $100,000 in commitment fees for the secured loan.

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

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