Ramco-Gershenson closes on $125 million revolver

By Sara Rosenberg

New York, Jan. 15 - Ramco-Gershenson Properties Trust renewed and expanded its secured revolver and amended its unsecured term loan.

The revolver, which was scheduled to mature in September 2003, now has a term of three years and the size was increased to $125 million from $110 million.

Furthermore, the renewed revolver has an accordion feature allowing up to a $25 million increase, which would bring the total to $150 million.

The revolver has an interest rate that can range from Libor plus 150 to 200 basis points, depending on the company's leverage ratios.

Fleet National Bank is the lead bank on the deal. Other participating banks include Bank One, Key Bank, Standard Federal Bank, Huntington Bank and Deutsche Bank.

Proceeds will be used for general corporate purposes.

Under the amendment to the term loan, the company can now borrow up to $40 million and there is a $10 million accordion feature. Interest on the term loan is Libor plus 325 to 375 basis points, depending on the company's leverage ratios.

Fleet National Bank and Key Bank are the lead banks on the term loan.

"We are pleased with our bank group's confidence in us and their willingness to renew our credit facilities early as well as increasing the capacity of each at more favorable interest rates," said Dennis Gershenson, president and chief executive officer, in a news release. "The new financing arrangements will provide us additional financial flexibility to carry out our business plan."

Ramco-Gershenson is a Southfield, Mich. real estate investment trust that owns, develops, acquires, manages and leases community shopping centers, regional malls and single-tenant retail properties.

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