Ramco-Gershenson Properties secures $360 million credit facility

By Marisa Wong

Madison, Wis., July 25 - Ramco-Gershenson Properties, LP, the majority owned operating partnership of Ramco-Gershenson Properties Trust, entered into a third amended and restated unsecured master loan agreement with a syndicate of banks led by KeyBanc Capital Markets, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The third amendment, completed on July 19, replaces the company's previous $250 million credit facility with a $360 million credit facility.

The new facility is comprised of a $240 million revolving line of credit with a four-year term and one-year extension option and a $120 million term loan that matures on July 19, 2017.

The facility can be upsized to $450 million through an accordion feature.

Borrowings are priced at Libor plus 165 basis points to Libor plus 225 bps, based on the company's leverage ratio.

"The extension and expansion of our credit facility as well as the improved pricing demonstrates the confidence our bank group has in our business plan and our ongoing commitment to maintaining a strong, flexible balance sheet," Dennis Gershenson, president and chief executive officer, said in a press release.

"By taking advantage of the current bank financing environment, we further our objectives of reducing the company's overall cost of capital and moving closer to an investment grade profile."

JPMorgan Chase Bank, NA and Bank or America, NA are co-syndication agents, and Deutsche Bank Securities Inc. and PNC Bank, NA are co-documentation agents for the restated facility. Other participating banks include RBS Citizens, NA, Capital One, NA, Huntington National Bank, Comerica Bank and Branch Banking and Trust Co.

Ramco-Gershenson is a real estate investment trust based in Farmington Hills, Mich. Its primary business is the ownership and management of shopping centers.

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