Inland Real Estate ups term loan to $180 million, extends by one year

By Susanna Moon

Chicago, Aug. 29 - Inland Real Estate Corp. boosted the cap on its credit facility commitments by $5 million to $180 million and extended the group's agreement by one year to August 2017.

The company also amended the term loan by increasing the outstanding balance to $180 million from $175 million and extended the maturity by one year to August 2018.

The company amended its term loan agreement on Aug. 21 and on Aug. 23 with KeyBank NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Pricing on the loans will be 145 basis points to 200 bps based on leverage. If the company achieves investment-grade ratings, the spread will drop to a range between Libor plus 105 bps to 195 bps based on ratings.

The quarterly unfunded commitment fee was cut to 30 bps if less than 50% of the commitment is funded. The fee used to be 0.35% of the unfunded commitment.

The capitalization rate was cut to 7% from 7.25%, and the implied debt service was cut to 6.5% from 7%.

Also, the amount under consolidated net worth was increased to $750 million from $650 million, and unencumbered asset value was raised to $500 million from $400 million.

The term "unsecured indebtedness" was amended to include recourse debt that is secured by ownership interests in another person that owns a project, which is encumbered by a lien securing debt.

Inland is an Oak Brook, Ill.-based real estate investment trust.

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