Glimcher gets $300 million unsecured credit facility

By Sara Rosenberg

New York, Aug. 23 - Glimcher Realty Trust closed on a new $300 million three-year unsecured credit facility, with a one-year extension option, according to a company news release.

KeyBank acted as lead arranger and administrative agent, La Salle as syndication agent, and Wachovia Bank and Commerzbank as co-documentation agents.

Also participating in the syndicate are U.S. Bank, Huntington National Bank, Charter One Bank, Bayerische Landesbank, PNC Bank and National City Bank.

Interest on the new facility is set at Libor plus 115 basis points, but can range from Libor plus 105 to 155 bps depending on the company's ratio of debt to total asset value. The unused commitment fee can range from 15 to 20 bps.

The facility, which closed on Monday, replaces the company's previous secured line of credit that was scheduled to mature on Oct. 16, 2006, carried an interest rate of Libor plus 170 bps and contained a 15 to 30 bp unused commitment fee.

Borrowings will be available to fund redevelopment, acquisition and development opportunities and for general corporate purposes.

At close, the company drew down about $141 million to pay $19 million as a partial prepayment on the Montgomery Mall bridge loan and to pay fees and costs associated with the facility.

"When factoring in the improved Libor spread and the change in the annual facility fee, we would initially expect our all-in pricing to improve around 20 basis points under the amended facility," stated Mark E. Yale, senior vice president and chief financial officer, in the release. "We are pleased to be able to expand our borrowing capacity and move to an unsecured facility while decreasing our effective borrowing rate."

Glimcher is a Columbus, Ohio-based real estate investment trust focused on enclosed regional and super-regional malls.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.