Sovran details restated revolver, term loan, delayed draw facility

By Marisa Wong

Madison, Wis., June 5 - Sovran Self Storage, Inc. and Sovran Acquisition LP entered into a fifth amended and restated revolving credit and term loan agreement with Manufacturers and Traders Trust Co. as administrative agent for an up to $175 million revolving credit facility, a $225 million term loan facility and a $100 million delayed draw term loan facility. Details on the amended and restated credit agreement were disclosed in an 8-K filed Wednesday with the Securities and Exchange Commission.

Sovran announced on Tuesday that it arranged for $500 million of senior debt, including commitments for a $100 million delayed draw note. The company also said that it negotiated extensions and rate reductions on its existing bank debt.

The restated credit agreement, completed on June 4, amends and restates the companies' fourth amended and restated revolving credit and term loan agreement dated Aug. 5, 2011.

The restated revolving facility, which may be increased to $250 million, has a five-year term with two one-year extension options.

The term loan facility and delayed draw facility are both due June 4, 2020.

Interest is equal to Libor plus a margin based on the companies' long-term debt credit ratings. The margin for revolving loans ranges from 75 basis points to 175 bps, and the margin for term loans ranges from 90 bps to 190 bps. Based on the current credit ratings, the margin is 150 bps for the revolver and 165 for the term loan and delayed draw facility.

Proceeds from the term loan were used to refinance debt issued under the prior credit agreement, the filing said.

Manufacturers and Traders Trust was also the lead arranger and bookrunner for the restated credit agreement. SunTrust Bank and Wells Fargo Bank, NA acted as co-syndication agents. PNC Bank, NA, U.S. Bank NA and HSBC Bank USA, NA were co-documentation agents.

Sovran is a self storage real estate investment trust based in Buffalo, N.Y.

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