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Colony Starwood gets $675 million three-year loan at Libor plus 200 bps
By Susanna Moon
Chicago, May 1 – Colony Starwood Homes said wholly owned subsidiary Colony Starwood Homes Partnership, LP obtained a $675 million three-year senior secured revolving credit facility.
Interest on the loans is initially Libor plus 200 basis points, based on leverage. The spread will range from Libor plus 175 bps to 230 bps.
Colony entered into a credit agreement on April 27 with JPMorgan Chase Bank, NA, Citibank, NA and Bank of America Merrill Lynch as joint lead arrangers and joint bookrunners and JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
The credit agreement includes an accordion to allow upsizing the facility to up to $1.2 billion as well as for a one-year extension option.
The facility was undrawn as of the effective date.
Loans and letters of credit will be used for working capital and for other general corporate purposes, including acquisitions and debt refinancing.
At the same time, the company terminated its amended agreement dated June 13, 2014 with Citibank, NA as administrative agent and its amended revolving credit agreement dated July 14, 2015 with JPMorgan as administrative agent.
The unused fee is 20 bps to 35 bps.
The facility is secured by pledges of equity interests in the borrower and subsidiary guarantors owned by loan parties. The stock pledges will be released if the company obtains a credit rate of either BBB- or higher from Standard and Poor’s or Baa3 or higher from Moody’s Investors Service.
Citibank, NA and Bank of America, NA are the co-syndication agents.
The agreement will mature on April 27, 2020.
Colony Starwood is an owner of single family homes based in Scottsdale, Ariz.
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