Pennsylvania Real Estate Investment Trust (PREIT) closed on a secured credit facility with $520 million in term loans and a $150 million revolving line of credit. The facility was closed with PREIT’s existing bank group, led by Wells Fargo Bank. It has a term of three years with a one-year extension option. Depending on the company’s leverage level, the facility bears an interest at an annual rate between 4.00 percent and 4.90 percent over LIBOR, with no interest rate floor. The initial rate was 4.90 percent over LIBOR.
PREIT used the proceeds to pay down an existing $500 million unsecured revolving credit facility and a $170 million unsecured term loan, both of which were scheduled to mature in March. The new facility is secured by mortgages on 22 properties, plus a second lien on one asset.
“We stated previously that the next step in our capital plan was to refinance our maturing credit facility and term loan, and today we are pleased to announce the completion of that step,” said Ronald Rubin, PREIT chairman and CEO, in a statement. “We appreciate the continued support and confidence of our lenders. This facility provides us with the opportunity to pursue our goals and maximize the long-term value of the company for our shareholders.”
Glimcher Modifies, Extends $470M Unsecured Credit Facility
Glimcher Realty Trust closed on an agreement to modify and extend its current $470 million unsecured credit facility. The agreement was signed with Glimcher’s bank group, led by KeyBank N.A. and Bank of America N.A.
The agreement modifies the existing facility and converts it to a partially secured revolving credit facility with an immediate reduction in commitments to $370 million. Upon the closing of a previously announced joint venture with the Blackstone Group, the commitment amount will be further reduced to $320 million. The facility is priced at LIBOR plus 400 basis points, with a 1.50 percent LIBOR floor. The deal comes with two one-year extension options, subject to satisfaction of certain conditions, including the reduction in commitment amounts to $300 million by Dec. 14, 2010 for the first extension and a further reduction to $250 million by Dec. 14, 2011 for the second extension.
The full list of banks participating in the transaction includes Aareal Capital Corp., Eurohypo AG, Huntington National Bank, MidFirst Bank, PNC Bank, RBS Citizens N.A. and Wachovia Bank.
Equity One Commences Public Stock Offering
Equity One Inc. will issue and sell 4.2 million shares of its common stock in a public offering. The company will also grant the underwriter a 30-day option to purchase up to an additional 630 shares to cover over-allotments, if any. Equity One plans to use the proceeds for the repayment of outstanding mortgage debt and general corporate purposes. Citi is acting as the sole book running manager for the offering.
In addition, MGN America LLC and Gazit America Inc., two entities affiliated with Equity One’s largest stockholder Gazit-Globe Ltd., have agreed to purchase directly from the company an aggregate of 600,000 additional shares in common stock in a private placement to be consummated simultaneously and subject to the closing of the public offering.
Carter Negotiates $2.7M Sale in South Carolina
Marion Properties LLC sold a 23,000-square-foot shopping center in Marion, S.C. to a private capital firm for approximately $2.7 million. The price represents $118 per square foot. The purchase was financed through a new loan sourced through BB& T.
The center, built in 2008, contains retailers including Dollar Tree, CATO and Shoe Show.
Drew Fleming and Mark Joines, of Carter’s retail investment sales team, represented the seller in the transaction.
Marcus & Millichap Sells Georgia Rite Aid for $1.75M
Marcus & Millichap negotiated the sale of a fee simple Rite Aid building in Stockbridge, Ga. to Fred Dolt, a private investor, for $1.75 million. The price represents $160.43 per square foot. The sale was all cash.
The building comes with a 20-year NNN lease, with seven years remaining. The sale includes 1.52 acres of land.
Tim Giambrone, vice president of investments and director with Marcus & Millichap’s national retail group in Atlanta, represented the seller in the transaction, a local private investor.