Federal Realty restates $1 billion revolver at Libor plus 77.5 bps

By Wendy Van Sickle

Columbus, Ohio, July 29 – Federal Realty Investment Trust amended and restated its credit agreement with Wells Fargo Bank, NA as administrative agent on Thursday to provide for a $1 billion unsecured revolving credit facility with a maturity date of Jan. 19, 2024, according to an 8-K filing with the Securities and Exchange Commission.

The agreement restates the company’s $800 million credit agreement entered on July 7, 2011, which had a maturity date of April 20, 2020.

The new credit facility bears interest at Libor plus 77.5 basis points, an improvement over the previous agreement’s Libor plus 82.5 bps. The spread over Libor may vary, based on Federal Realty’s credit ratings.

An accordion feature permits the company to increase borrowing capacity to up to $1.5 billion.

Wells Fargo Securities, LLC and PNC Capital Markets, LLC are the joint book managers.

PNC Bank, NA is the syndication agent.

Federal Realty must comply with a minimum fixed charge coverage ratio, a maximum secured debt ratio, and a minimum unencumbered leverage ratio.

Proceeds may be used to refinance existing debt and for working capital and general corporate purposes.

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

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