Federal Realty gets $400 million one-year loan at Libor plus 135 bps

By Wendy Van Sickle

Columbus, Ohio, May 6 – Federal Realty Investment Trust entered into a credit agreement on Wednesday providing for a $400 million unsecured term loan due May 6, 2021, according to an 8-K filing with the Securities and Exchange Commission.

There is a one-year extension option.

The term loan bears interest at Libor plus a spread that is initially 135 basis points and can range from 130 bps to 215 bps, depending on Federal Realty’s ratings.

PNC Capital Markets LLC, Regions Capital Markets, SunTrust Robinson Humphrey, Inc. and U.S. Bank NA are the joint lead arrangers and joint book managers.

PNC Bank, NA is the administrative agent. PNC, Regions Bank, Truist Bank and U.S. Bank are the co-syndication agents.

The proceeds will be available to be used for working capital and general corporate purposes.

Also on Wednesday, the company amended its credit agreement dated July 25, 2019 with Wells Fargo Bank, NA as administrative agent.

Among other things, the amendment modifies the measurement period for certain financial covenants from the most recent quarter, annualized, to a trailing four-quarter period, includes cash on hand in the unencumbered asset value calculation, and allows for construction-in-process to be a higher percentage of certain asset value calculations, all as more specifically provided in the amendment.

The real estate investment trust is based in Rockville, Md.

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