Sun Communities to pay down revolver with proceeds from stock offering

By Wendy Van Sickle,

Columbus, Ohio, Nov. 2 – Sun Communities, Inc. plans to repay borrowings outstanding under its revolving credit facility with the proceeds from an offering of 3.25 million shares of common stock, according to a 424B5 filing with the Securities and Exchange Commission.

As of Friday, the company had $127 million outstanding under the $392 million revolver. The facility’s interest can range from Libor plus a spread of 140 basis points to 225 bps. As of Friday, the margin over Libor was 145 bps. The revolver matures Aug. 19, 2020 and can be extended for two additional six-month periods.

Proceeds from the revolver were used to pay off the company’s previous senior credit facility, for working capital and for other general corporate purposes.

Sun Communities is a Southfield, Mich.-based real estate investment trust.

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