Alexandria Real Estate amends and restates revolver, term loans

By Marisa Wong

Madison, Wis., Sept. 5 - Alexandria Real Estate Equities, Inc. entered into a fourth amended and restated credit agreement on Aug. 30 for a $1.5 billion senior revolving credit facility with a $500 million accordion feature, according to an 8-K filed Thursday with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent, and Merrill Lynch, Pierce, Fenner & Smith Inc., J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the joint lead arrangers and joint bookrunners.

The credit agreement amends and restates the company's third amended and restated credit agreement dated April 30, 2012.

The company reduced pricing on the revolver and extended the maturity date.

At closing, the margin for Libor loans was 110 basis points.

The revolver now matures on Jan. 3, 2019, provided that the company exercises two six-month extension options.

In addition, the company amended some of the revolver's financial covenants, including the secured debt ratio and unsecured interest coverage ratio, and removed the minimum book value covenant.

Under the amended credit agreement, the company must not, as of the last day of any fiscal quarter, let its

• Leverage ratio exceed 60%, except that as of the last day of the fiscal quarter in which the company completes any material acquisition and for the three consecutive fiscal quarters after that, its leverage ratio must not exceed 65%;

• Unsecured leverage ratio exceed 60%, except for four calculation dates immediately following any material acquisition, in which case its unsecured leverage ratio is not to exceed 65%;

• Unsecured interest coverage ratio be less than 1.5 to 1;

• Secured debt ratio exceed 45%, except that as of the last day of the fiscal quarter in which the company completes any material acquisition and for the three consecutive fiscal quarters after that, its secured debt ratio must not to exceed 50%; or

• Fixed charge coverage ratio be less than 1.5 to 1.

Restated term loan

On Aug. 30, Alexandria also entered into an amended and restated term loan agreement with Bank of America, NA as administrative agent, J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Inc. and Citigroup Global Markets Inc. as joint lead arrangers and joint lead bookrunners.

The term loan agreement amends and restates the term loan agreement dated Dec. 6, 2011 to, among other things, reduce pricing and extend the maturity date of the loan.

The term loan now matures on Jan. 3, 2019, extended from Jan. 31, 2017, provided that the company exercises two six-month extension options.

Interest is equal to Libor plus an applicable margin. At closing the spread was 120 bps.

In addition, the company amended some financial covenants under the term loan to conform them to those contained in the amended and restated revolver.

Aggregate commitments under the amended term loan are equal to $600 million.

Also on Aug. 30, Alexandria amended its second amended and restated term loan agreement dated July 26 with Citibank, NA as administrative agent and Citigroup Global Markets Inc., RBC Capital Markets and RBS Securities Inc. as joint lead arrangers and joint bookrunners.

The company modified financial covenants to conform them to those contained in the restated revolver.

Alexandria is a Pasadena, Calif.-based owner and operator of real estate and technical infrastructure for the life science industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.