Acadia Realty lifts revolver to $300 million, term loan to $400 million

By Rebecca Melvin

Concord, N.H., July 2 – Acadia Realty LP amended its credit agreement to increase its revolver to $300 million from $250 million and its term loan to $400 million from $350 million, according to an 8-K filing with the Securities and Exchange Commission.

The June 29 amendment also extends the term of the revolver to June 29, 2025, with an option to extend the maturity date for an additional six months up to two times, and extends the term loan to June 29, 2026.

The amendment also includes the capacity to issue up to $60 million of letters of credit.

In addition, the amended credit facility has an accordion feature to increase its capacity to up to $900 million at the option of the Acadia Realty.

The revolver bears interest at Libor plus 125 basis points to 170 bps, and the term loan bears interest at Libor plus 140 bps to 200 bps, with the applicable margin in each case based on the company’s leverage ratio.

For the revolver, there is also a facility fee ranging from 20 bps to 35 bps, based on the leverage ratio.

Pricing will be based on debt ratings once the company obtains a rating of at least BBB- from S&P or Baa3 from Moody’s.

The second amended and restated credit facility is subject to compliance with financial covenants, including a maximum leverage ratio, a maximum secured leverage ratio, a minimum tangible net worth, a minimum fixed-charge coverage ratio, a minimum unsecured interest coverage ratio, a maximum unencumbered leverage ratio and a maximum secured recourse indebtedness ratio.

Bank of America, NA is the administrative agent of the amended agreement.

Wells Fargo Bank NA, Truist Bank and PNC Bank NA are syndication agents, BofA Securities, Inc. and Wells Fargo Securities, LLC are joint bookrunners, and BofA Securities, Inc., Wells Fargo Securities, LLC, Truist Bank and PNC Capital Markets LLC are joint lead arrangers and the lenders.

The agreement was entered into by Acadia and its general partner, Acadia Realty Trust, a Maryland real estate investment trust.

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