Cedar Realty closes new seven-year $100 million unsecured term loan

By Wendy Van Sickle

Columbus, Ohio, April 28 – Cedar Realty Trust, Inc. closed a new seven-year $100 million unsecured term loan, according to a Thursday press release.

The term loan allows for delayed draws through Oct. 26, and no amounts were drawn at closing.

Initial interest is Libor plus 165 basis points, and the margin above Libor depends on the company’s leverage ratio.

The company also entered into a forward interest rate swap agreement that converts Libor to a fixed rate beginning Nov. 1, 2016 through the loan’s maturity. Based on the company’s leverage ratio at closing, the effective interest rate will be 3.2% once the swap agreement takes effect.

KeyBank NA acted as administrative agent for the term loan, and Regions Bank, Branch Banking and Trust Co. and Capital One, NA acted as co-syndication agents.

“This new unsecured term loan prefunds a significant portion of our 2016 debt maturities and further unencumbers the company’s portfolio,” Cedar chief financial officer Philip Mays said in the release.

The new term loan requires compliance with various covenants and restrictions.

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

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