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Associated Estates extends revolver to 2017, lowers interest rate
By Marisa Wong
Madison, Wis., June 19 - Associated Estates Realty Corp. amended its $350 million unsecured revolving credit facility to extend the maturity date and reduce the interest rate spread, according to an 8-K filing with the Securities and Exchange Commission.
The company entered into a second amendment to its second amended and restated credit agreement on Wednesday with PNC Capital Markets LLC and Wells Fargo Securities, LLC as co-lead arrangers, PNC Bank, NA as administrative agent and Wells Fargo Bank, NA as syndication agent. Bank of America, NA, Citibank, NA and RBS Citizens, NA are documentation agents. Other participating lenders are Raymond James Bank, FSB and U.S. Bank NA.
The maturity date is now June 15, 2017, extended from Jan. 12, 2016.
Interest is equal to Libor plus 100 basis points to 175 bps, depending on the company's credit ratings. The initial spread is 130 bps.
The amended credit agreement contains financial covenants that include a maximum debt limitation and ratios related to net worth, leverage, fixed-charge coverage, unencumbered interest coverage and dividend payments.
According to the filing, the company also entered into a third amendment to its $150 million term loan agreement dated June 3, 2011 to modify some terms, covenants and provisions.
Associated Estates Realty is a Richmond Heights, Ohio-based real estate investment trust.
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