Cedar Realty gets $150 million term loans, amends existing loan

By Angela McDaniels

Tacoma, Wash., Feb. 12 - Cedar Realty Trust, Inc. closed a five-year $75 million unsecured term loan and a seven-year $75 million unsecured term loan, according to a company news release.

The five-year term loan is initially priced at Libor plus 175 basis points, and the entire proceeds were drawn at closing.

The seven-year term loan is initially priced at Libor plus 200 bps and allows for delayed draws of the proceeds through July 1.

Additionally, the company amended its existing $50 million unsecured term loan due 2018, decreasing the interest rate by 20 bps to Libor plus 175 bps, thereby matching the pricing grid of the new five-year term loan.

The bank group included KeyBank NA as administrative agent and Capital One, NA, Regions Bank and Manufacturers and Traders Trust Co. as co-lead arrangers. Other banks included TD Bank, NA as documentation agent and Raymond James Bank, NA.

The company also entered into forward interest rate swap agreements that convert the interest rates to fixed rates for the new term loans beginning July 1 through their maturities. As a result, the effective fixed interest rates will be 3.37% for the five-year term loan and 4.27% for the seven-year term loan beginning July 1 based on the company's leverage ratio at closing.

The new term loans prefund all of the company's 2014 debt maturities and extend and stagger its debt maturities, chief financial officer Philip Mays said in the release.

Cedar Realty Trust, Inc. is a real estate investment trust based in Port Washington, N.Y., that focuses on grocery-anchored shopping centers.

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