Armada Hoffler enters into $100 million senior secured revolver

By Marisa Wong

Madison, Wis., May 17 - Armada Hoffler Properties, Inc. entered into a credit agreement on May 13 for a $100 million senior secured revolving credit facility, according to an 8-K filed Friday with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent for the credit agreement; Regions Bank is the syndication agent; and Merrill Lynch, Pierce, Fenner & Smith Inc. is the lead arranger and bookrunner.

The company has the option to increase the borrowing capacity to $250 million.

The revolver matures on May 13, 2016 but may be extended to May 12, 2017.

Interest is equal to Libor plus 160 basis points to 220 bps, depending on the company's total leverage ratio.

The credit agreement contains financial covenants that require compliance with loan-to-value, leverage and coverage ratios and maintenance of minimum tangible net worth, as well as covenants that limit the company's ability to incur additional debt or make distributions.

Operating partnership Armada Hoffler, LP borrowed $40 million upon completion of Armada Hoffler Properties' initial public offering of common stock on May 13, the filing noted. The borrowings were used to repay existing debt relating to some of Armada Hoffler's properties.

The real estate company is based in Virginia Beach, Va.

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