Jones Lang LaSalle gets $200 million revolver, $50 million term loan

By Angela McDaniels

Tacoma, Wash., June 2 – Jones Lang LaSalle Income Property Trust, Inc. entered into a credit agreement on May 26 that provides for a $200 million revolving credit facility and a $50 million term loan, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is the bookrunner, joint lead arranger and administrative agent. Bank of America, NA and PNC Bank, NA are the co-syndication agents. Bank of America Merrill Lynch and PNC Bank are joint lead arrangers. Wells Fargo Bank, NA, Fifth Third Bank and BMO Harris Bank NA are additional lenders.

The credit facility has a $250 million accordion feature.

The revolver has a $25 million sublimit for letters of credit.

The initial interest rate for the revolver is Libor plus 135 basis points. The margin ranges from 130 bps to 200 bps, depending on the company’s total leverage ratio.

The revolver carries a 20 bps to 25 bps unused fee.

The maturity date of the revolver is May 26, 2020. The company has two 12-month extension options, subject to a 0.15% extension fee.

The initial interest rate for the term loan is Libor plus 130 bps. The margin ranges from 125 bps to 195 bps, depending on leverage.

The maturity date of the term loan is May 26, 2022.

Borrowings under the credit facility are guaranteed by the company and some of its subsidiaries.

The credit facility requires the maintenance of financial covenants including unencumbered property pool leverage ratio, debt service coverage ratio, maximum total leverage ratio, fixed charges coverage ratio, minimum net asset value, maximum secured debt ratio, maximum secured recourse debt ratio, maximum permitted investments and unencumbered property pool criteria.

The credit facility provides the flexibility to move assets in and out of the unencumbered property pool during its term.

Borrowings under the credit facility are available for general business purposes including, but not limited to, refinancing debt and financing the acquisition of permitted investments, including commercial properties.

At closing, the company borrowed $25 million of the revolver and drew the entire $50 million term loan. Proceeds were used to repay the $25 million outstanding balance on the company’s $150 million line of credit with Bank of America, NA, which was terminated, and a $48.25 million mortgage loan.

Jones Lang LaSalle is a Chicago-based real estate investment trust that owns apartment, industrial, office, retail and other properties.

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