Armada Hoffler secures $355 million of amended, restated facilities

By Sarah Lizee

Olympia, Wash., Oct. 9 – Armada Hoffler Properties, Inc. and Armada Hoffler, LP entered into a second amended and restated credit agreement on Oct. 3 with Bank of America, NA as administrative agent, providing for a $150 million senior unsecured revolver and a $205 million senior unsecured term loan, according to an 8-K filing with the Securities and Exchange Commission.

BofA Securities, Inc., Regions Capital Markets and PNC Capital Markets LLC are joint lead arrangers, with BofA as the bookrunner. Regions Bank and PNC Bank, NA are the syndication agents.

The amended loans replace the operating partnership’s prior $150 million revolver scheduled to mature on Oct. 26, 2021 and its prior $205 million term loan scheduled to mature on Oct. 26, 2022.

Future borrowings may be used for general corporate purposes, including funding acquisitions, mezzanine lending and development and redevelopment of properties in the company’s portfolio and for working capital.

The new revolver will mature Jan. 24, 2024, with two six-month extension options, subject to some conditions, including payment of a 7.5 basis point extension fee at each extension.

The new term loan will mature Jan. 24, 2025.

There is an accordion feature that allows the total commitments to be increased to $700 million.

The revolver bears interest at Libor plus 130 bps to 185 bps, and the term loan bears interest at Libor plus 125 bps to 180 bps, in each case depending on the operating partnership’s leverage. Interest is initially Libor plus 160 bps on the revolver and Libor plus 155 bps on the term loan.

There is an unused commitment fee of 15 bps or 25 bps on the unused portions of the commitments under the revolver, depending on the amount of borrowings under the revolver.

If the operating partnership attains investment grade credit ratings from S&P or Moody’s, it may elect to have borrowings become subject to interest rates based on those credit ratings.

Covenants include a total leverage ratio of not more than 60%, or 65% for the two consecutive quarters following any acquisition with a purchase price of at least up to $100 million, but only up to two times during the term of the credit facility, among other covenants.

Armada is a real estate company based in Virginia Beach.

© 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.