Inland Real Estate cuts rate on amended loan by scrapping Libor floor

By Susanna Moon

Chicago, March 17 - Inland Real Estate Corp. amended its loan agreement to remove the Libor floor rate, lowering the borrowing rate to 3.5625% from 4.5%, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Before the amendments, the base Libor floor rate was set at 1.5% and, at the time of the amendments, one-month Libor was 0.3125%.

Some credit terms regarding the spread between the interest rate on the company's loans and the Libor rate also were revised as follows:

• The spread on fixed-rate loans is now 325 basis points, up from 300 bps before the amendments;

• The spread on floating-rate loans is now 225 bps, up from 200 bps;

• The ABR margin is now 225 bps, up from 200 bps; and

• The Libor margin is now 325 bps, up from 300 bps.

The company paid a modification fee of $750,000, or 0.25% of the commitment amount of $300 million at the time.

The company noted that interest rates may fluctuate in the future with the base rate.

Inland entered into a second amendment on March 11 to its amended and restated term loan agreement dated as of June 24 and a second amendment to its fourth amended and restated credit agreement dated as of June 24.

KeyBank NA is administrative agent. The lenders are Wells Fargo Bank, NA, Bank of America, NA, RBS Citizens, NA and BMO Harris Financing, Inc.

Inland Real Estate is an Oak Brook, Ill.-based real estate investment trust engaged in the ownership, operation and development of shopping centers and single-tenant retail properties.

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