Retail Opportunity amends credit facilities, lowers margin to 110 bps

By Toni Weeks

San Luis Obispo, Calif., Sept. 30 - Retail Opportunity Investments Corp. amended and extended its unsecured revolving credit facility, according to a press release.

The company increased the borrowing capacity to $350 million from $200 million, increased the accordion feature on the facility so that borrowing capacity can be expanded by another $350 million, extended the maturity date to September 2017 and lowered pricing to Libor plus 110 basis points.

The company also amended its $200 million unsecured term loan to conform to the revolver.

"With these latest amendments of our unsecured facilities, we have lowered the company's borrowing spread by 29% during the past year, from a spread of 155 bps a year ago to 110 bps today," chief financial officer Michael B. Haines said in the release. "Furthermore, we have increased the potential capacity under the facilities by 67% from $600 million combined capacity a year ago to $1 billion today, including the accordion features."

KeyBanc Capital Markets Inc. and BofA Merrill Lynch are the joint lead arrangers and joint bookrunners. KeyBank NA is the administrative agent, swingline lender and letter-of-credit issuer. Bank of America, NA is the syndication agent, and PNC Bank, NA and U.S. Bank NA are co-documentation agents.

Bank of Montreal, JPMorgan Chase Bank, NA, RBS Citizens, NA, Regions Bank, Royal Bank of Canada and Wells Fargo Bank, NA are additional participants.

San Diego-based Retail Opportunity is a self-managed real estate investment trust focusing on the acquisition, ownership and management of necessity-based community and neighborhood shopping centers that are anchored by national or regional supermarkets and drugstores.

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