Dividend Capital enters into $100 million secured revolving facility

By Jennifer Chiou

New York, Oct. 4 - Dividend Capital Total Realty Trust Inc., through its operating partnership Dividend Capital Total Realty Operating Partnership, LP, entered into on Sept. 27 an up to $100 million senior secured revolving credit facility with PNC Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

KeyBank NA was the syndication agent.

During the first two years, the company has the option to increase the facility amount to up to $200 million.

The credit facility also includes a standby letter-of-credit facility with a $25 million sublimit and a swingline facility with a sublimit of up to $10 million.

The facility is set to mature on Sept. 27 and may be extended for two additional one-year periods. There is an extension fee equal to 0.25% of the amount committed under the facility.

Borrowings will bear interest at Libor plus 300 basis points to 400 bps.

The company is required to adhere to consolidated quarterly financial covenants, including a total leverage ratio test, fixed-charge coverage ratio test, debt yield test and a tangible net worth test.

Proceeds will be used for general purposes, including for debt refinancing, property acquisitions, new construction, renovations, expansions, tenant improvement costs and equity investments primarily associated with commercial real estate properties.

The non-traded real estate investment trust is based in Denver.

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