Cedar Shopping looks to amend and restate secured revolving facility

By Jennifer Chiou

New York, Nov. 6 - Cedar Shopping Centers Inc. is negotiating an amended and restated secured revolving stabilized property credit facility with agent Bank of America and three other lenders, according to a 10-Q filing with the Securities and Exchange Commission.

As of Friday, the company has received commitments from participants for $265 million.

The principal terms of the new facility include:

• An availability to be based primarily on appraisals, with a 67.5% advance rate;

• An interest rate based on Libor plus 350 basis points, with a 200 bps Libor floor;

• A leverage ratio limited to 67.5%;

• An unused portion fee of 50 bps; and

• A maturity date of Jan. 31, 2012 plus one-year extension option.

The company will pay participating lender fees estimated at $9 million.

Cedar Shopping said it expects to conclude the new facility during the fourth quarter of 2009.

According to the 10-Q, although the amount that the company will be permitted to draw under the proposed facility will be in excess of the amount outstanding under the existing facility, the remaining availability will be less than under the existing facility, absent contributions of additional properties to the collateral pool.

Cedar Shopping Centers is a Port Washington, N.Y.-based real estate investment trust, which focuses on supermarket-anchored shopping centers.

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