Sun Communities combines and replaces old facilities with revolver

Chicago, June 14 – Sun Communities Operating LP and parent Sun Communities, Inc. entered into a fourth amended and restated credit agreement on Monday with Citibank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

A new $2 billion revolver combines and replaces the earlier $750 million credit facility that was part of a third amended and restated credit agreement from May 21, 2019 that expired May 21, 2023, and an existing $1.8 billion credit facility between subsidiary Safe Harbor Marinas, LLC from a Sept. 14, 1018 agreement that was scheduled to mature Oct. 11, 2024.

The new agreement allows for additional borrowings of up to $1 billion with the option to treat some or all of the additional borrowings as an incremental term loan.

Except for $500 million of borrowings, the revolver matures June 14, 2025, with the possibility of two additional six-month extensions subject to satisfaction of certain conditions. The $500 million of borrowings is available until Oct. 11, 2024 and may not be extended.

Interest will be the eurocurrency rate plus a margin that ranges from 72.5 basis points to 140 bps.

The margin is based on credit ratings and is currently 85 bps.

At closing, there were $1.169 billion in borrowings on the new credit facility.

In addition to serving as administrative agent, Citi is the swingline lender and letter of credit issuer.

Citibank, Citizens Bank, NA, BofA Securities, Inc., BMO Capital Markets Corp., JPMorgan Chase Bank, NA, Fifth Third Bank, Regions Bank, Royal Bank of Canada, Huntington National Bank, Truist Bank, U.S. Bank NA and Wells Fargo Bank, NA are joint lead arrangers.

Citibank, Citizens, BofA, BMO Capital and JPMorgan are joint bookrunners.

Bank of America, NA, JPMorgan, Bank of Montreal, and Citizens are co-syndication agents.

Sun Communities is a Southfield, Mich.-based real estate investment trust.

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