Associated Estates Realty gets $250 million senior unsecured revolver

By Sara Rosenberg

New York, Oct. 21 - Associated Estates Realty Corp. closed on a new $250 million three-year senior unsecured revolver credit facility, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

PNC Bank and Wells Fargo acted as the co-lead arrangers on the deal that was completed on Oct. 18, with PNC the administrative agent.

Initial pricing on the revolver is Libor plus 230 basis points with a 35 bps unused fee. Pricing can range from Libor plus 230 bps to 325 bps based upon a financial ratio.

Financial covenants include a maximum debt limitation and ratios related to net worth, leverage, fixed-charge coverage, unencumbered interest coverage and dividend payments.

There is a $50 million accordion feature and a one-year extension option.

Proceeds were used to replace an existing $150 million revolver.

Associated Estates is a Richmond Heights, Ohio-based self-administered and self-managed equity real estate investment trust.

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