Equity One restates revolver for added commitments, extended maturity

By Marisa Wong

Morgantown, W.Va., Sept. 20 – Equity One, Inc. amended and restated its credit agreement dated Dec. 10, 2014 to, among other things, increase the revolving commitments by $250 million and extend the maturity by 25 months, according to an 8-K filing with the Securities and Exchange Commission.

The restated credit agreement provides for an $850 million unsecured revolver due Feb. 1, 2021, with two six-month extension options.

Wells Fargo Bank, NA is the administrative agent, with PNC Bank, NA as syndication agent, Wells Fargo Securities, LLC, PNC Capital Markets LLC, U.S. Bank NA and TD Securities (USA) LLC as joint lead arrangers and joint bookrunners and U.S. Bank, SunTrust Bank, Branch Banking and Trust Co. and TD Bank, NA as co-documentation agents.

Total commitments may be increased up to an aggregate of $1.7 billion.

The facility includes a competitive bid option that allows the company to conduct auctions among the participating banks for borrowings at any one time outstanding up to 50% of the commitments then in effect, a $50 million letter-of-credit commitment and a $75 million multicurrency subfacility.

Borrowings (other than bid rate loans) will bear interest at Libor (or CDOR for Canadian dollar loans) plus a margin of 82.5 basis points to 155 bps, depending on the company’s senior unsecured long-term debt ratings. Based on current credit ratings, the applicable margin is 100 bps.

The credit agreement also calls for a facility fee, which is currently 20 bps, that varies from 12.5 bps to 30 bps depending on credit ratings.

In addition, the company amended some of the credit agreement’s covenants and provisions, including but not limited to the removal of restrictions on investments and a decrease in the capitalization rate used to determine compliance with financial covenants.

The company also entered into amendments to its term loan agreements to make changes to covenants consistent with those of the restated revolver.

The company amended its $250 million term loan dated Dec. 10, 2014 and its $300 million delayed-draw term loan dated Dec. 2, 2015, of which $225 million is outstanding. PNC Bank is the administrative agent under both term loans.

The revolver and the term loan amendments were completed on Sept. 16.

Equity One is a real estate investment trust with headquarters in New York and North Miami Beach, Fla.

© 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.