GTJ Realty enters restated $75 million senior secured credit facility

By Marisa Wong

Los Angeles, Oct. 26 – GTJ Realty, LP entered into a first amended and restated credit agreement on Oct. 22 with KeyBank NA as administrative agent and KeyBanc Capital Markets Inc. as lead arranger for a $75 million senior secured credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility consists of a $25 million revolving line of credit facility with an initial term of three years and two one-year extension options and a $50 million term loan facility with an initial term of four years and a one-year extension option, which was funded in a single advance on Oct. 22.

Up to $10 million of the total commitments under the credit facility will be available for the issuance of letters of credit and swingline loans.

The borrower may request an increase in the size of the term loan, request an additional incremental term loan or increase commitments under the revolver, collectively in an aggregate amount that would not cause the credit facility to exceed $125 million. The accordion commitments can be committed at closing or any time after that, and the accordion commitments will be syndicated on a best efforts basis.

Loans bear interest at Libor plus an applicable margin based on the overall leverage of the properties and whether the loan is under the revolver or term loan facilities, subject to a 0% Libor floor. Base rate loans and Libor loans may be converted to loans of the other type, subject to conversion conditions. Each revolver loan will be evidenced by a separate promissory note.

The borrower agreed to pay to the lenders an unused fee under the revolver of 20 basis points for usage less than 50% and 15 bps for usage 50% or greater, calculated as a per diem rate, multiplied by the excess of the total commitment over the outstanding principal amount of the loans under the total revolver commitment at the time of the calculation.

The borrower has the right to reduce the amount of loan commitments under the revolver or terminate it.

The credit facility requires compliance with covenants including those pertaining to maximum consolidated leverage ratio, minimum consolidated fixed-charge coverage ratio, minimum liquidity, minimum consolidated tangible net worth, minimum debt yield, maximum distributions, minimum occupancy, permitted investments and restrictions on indebtedness.

The real estate investment trust company is based in Garden City, N.Y.

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