Federal Realty increases revolver to $800 million, extends to 2020

By Wendy Van Sickle

Columbus, Ohio, April 26 – Federal Realty Investment Trust extended and increased the capacity of its credit agreement dated July 7, 2011 with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The April 20 amendment increased the unsecured revolving credit facility to $800 million from $600 million and extended its maturity to April 20, 2020, with two six-month extension options.

Borrowings bear interest at Libor plus 82.5 basis points, and the commitment fee is 12.5 bps. The spread over Libor can range from 80 bps to 155 bps and the commitment fee from 10 bps to 30 bps, depending on Federal Realty’s credit rating.

There is an accordion feature allowing the trust to expand the facility up to a total of $1.5 billion.

Wells Fargo Securities, LLC and PNC Capital Markets LLC acted as book managers and were joined as lead arrangers by Regions Capital Markets, SunTrust Robinson Humphrey, Inc. and U.S. Bank NA. PNC Bank, NA acted as syndication agent.

The amendment, which was the credit agreement’s second, also made some changes to the trust's financial maintenance and other covenants.

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

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