Mid-America Apartments enters $750 million restated credit facility

By Marisa Wong

Morgantown, W.Va., Oct. 16 – Mid-America Apartments, LP entered into a $750 million senior unsecured second amended and restated credit agreement on Oct. 15 with KeyBank NA as administrative agent and KeyBanc Capital Markets Inc., Wells Fargo Securities, LLC and J.P. Morgan Securities LLC as lead arrangers, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement will be used to refinance the company’s existing credit agreement, as well as to finance acquisitions, development and general corporate purposes.

The agreement is scheduled to mature on April 15, 2020 but allows for an extension to Oct. 15, 2020, subject to an extension fee of 7.5 basis points.

Interest is equal to Libor plus a spread ranging from 85 basis points to 155 bps, based on the company’s investment-grade rating.

The agreement also contains an accordion feature, which allows the borrower to increase the total amount of unsecured debt under the agreement to $1.5 billion.

In addition, the agreement contains financial covenants that, among other things, require unencumbered, total and secured leverage ratios, minimum unencumbered interest coverage ratios, adjusted consolidated EBITDA to consolidated fixed charges and minimum consolidated tangible net worth.

Mid-America Apartments is a Memphis-based real estate investment trust.

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