National Retail amends/restates loan to lift capacity to $450 million

By Jennifer Chiou

New York, June 1 - National Retail Properties Inc. entered into an amended and restated credit agreement with Wells Fargo Bank, NA as administrative agent, increasing the borrowing capacity to $450 million from $400 million as well as the accordion feature to up to $200 million from $100 million, according to an 8-K with the Securities and Exchange Commission.

The amendment further reduced the interest rates under the tiered-rate structure, with the maximum interest rate reduced to Libor plus 195 basis points from Libor plus 340 bps.

Other changes include the removal of the Libor floor and the extension of the term of the agreement to May 24, 2015 from Nov. 2, 2012. There is still a one-year extension option.

Borrowings will initially bear interest at Libor plus 150 bps based on credit ratings. This was cut from Libor plus 280 bps.

The amended agreement contains certain covenants, including restrictions on incurring additional debt and a maximum leverage ratio, a minimum fixed-charge coverage ratio and a maximum secured indebtedness ratio, the filing added.

Orlando, Fla.-based National Retail is an operator, acquirer and developer of retail properties leased primarily to retail tenants under long-term net leases.

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