Washington Prime obtains $650 million revolver, $350 million term loan

By Wendy Van Sickle

Columbus, Ohio, Jan. 22 – Washington Prime Group, LP entered into an agreement on Monday that provides for a $650 million revolving credit facility and a $350 million term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The revolver is set to mature on Dec. 30, 2021 and has two six-month extension options. The term loan will mature on Dec. 30, 2022 and has no extension options.

An accordion feature allows the total facility size to be increased by up to an additional $500 million of revolving or term loans.

So long as the borrower maintains investment-grade ratings, the revolver will bear interest at Libor plus a margin that will be based on ratings and will range from 87.5 basis points to 125 bps, and the term loan will bear interest at Libor plus a margin based on ratings that will range from 90 bps to 145 bps.

In the event Washington Prime does not maintain investment-grade ratings, the margin will be based on leverage and will rise to a range of 130 bps to 180 bps for the revolver and 145 bps to 210 bps for the term loan.

The revolver’s facility fee will range from 12.5 bps to 25 bps, if based on ratings, or 20 bps to 35 bps, if based on leverage.

Bank of America Merrill Lynch was bookrunner and a joint lead arranger along with administrative agent Bank of America, NA and PNC Capital Markets LLC, U.S. Bank NA, Citizens Bank, NA, Huntington National Bank and Sumitomo Mitsui Banking Corp.

PNC and U.S. Bank acted as co-syndication agents and Citizens Bank, Huntington and Sumitomo as co-documentation agents.

About $155 million of the revolver was used at closing to repay Washington Prime’s previous revolver entered in May 2014. The term loan was fully funded at closing, with most proceeds used to repay the $270 million term loan outstanding under a June 2015 agreement and the remainder used to reduce the outstanding revolver balance.

Washington Prime had drawn down on the existing revolver on Thursday to repay an $86.5 million mortgage loan secured by the Outlet Collection Seattle.

The real estate investment trust is based in Columbus, Ohio.

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