Sun Communities gets $450 million four-year loans via Citi, BofA, BMO

By Susanna Moon

Chicago, Aug. 24 – Sun Communities, Inc. gave more details of its $450 million four-year senior unsecured credit facility with Citigroup Global Markets, Inc., Bank of America Merrill Lynch and BMO Capital Markets as joint lead arrangers and bookrunning managers in an 8-K filing with the Securities and Exchange Commission.

At closing Wednesday, there was $262 million of borrowings under the facility.

Citibank, NA is the administrative agent, swingline lender and letter-of-credit issuer; Bank of America, NA and Bank of Montreal are the co-syndication agents; Fifth Third Bank and Regions Bank are the co-documentation agents; and PNC Bank, NA, Royal Bank of Canada, U.S. Bank NA, Associated Bank, NA, Comerica Bank and Flagstar Bank, FSB also are lenders.

As announced Thursday, the facility consists of a $392 million revolving loan and a $58 million term loan.

Interest will initially be Libor plus 145 basis points for the revolving loan and Libor plus 140 bps for the term loan. The spread over Libor ranges from 140 bps to 225 bps for the revolver, based on leverage, and 135 bps to 220 bps for the term loan.

The facility has an accordion for up to $300 million of additional borrowings and two six-month extension options.

The facility replaces the company’s $350 million senior secured revolving line of credit set to mature on May 14, 2017.

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

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