Retail Properties gets $1 billion facility led by Wells Fargo, KeyBanc

By Susanna Moon

Chicago, May 15 - Retail Properties of America, Inc. said it closed a $1 billion amended and restated credit facility, boosting the size by $350 million and pushing out the maturity by more than two years.

The facility consists of a $450 million unsecured term loan and a $550 million unsecured revolver, with Wells Fargo Securities, LLC and KeyBanc Capital Markets Inc. as the co-lead arrangers.

Pricing on the revolver was reduced by 50 bps to Libor plus 150 basis points, and pricing on the unsecured term loan was cut by 55 bps to Libor plus 145 bps.

Pricing was reduced to the lowest tier of the leverage grid as the result of a reduction in the capitalization rate used to determine asset value under the facility to 7.25% from 7.5%, according to a company press release.

The maturity date was extended to May 2018 for the unsecured term loan and to May 2017 for the unsecured revolver.

The company has the option to extend the maturity of the unsecured revolver for another year to 2018, with an extension fee of 0.15%, a 10 bps reduction from the previous facility.

The facility also includes an accordion feature that allows the company to lift the total size up to $1.45 billion.

KeyBank, NA is the administrative agent, and Wells Fargo Bank, NA is the syndication agent. Bank of America, NA, Citibank, NA, Deutsche Bank Securities, Inc., PNC Bank, NA and Regions Bank are the documentation agents. U.S. Bank, NA and Bank of Nova Scotia are the senior managing agents. Capital One, NA, Fifth Third Bank and Union Bank NA are the managing agents. Branch Banking & Trust Company, JP Morgan Chase Bank, NA and Sumitomo Mitsui Banking Corp. also are lenders.

"The improved economics and structure of this facility furthers the company's progress toward an investment-grade rating by providing additional capacity to unencumber properties and grow the asset base at an improved cost of capital," Angela Aman, executive vice president and chief financial officer, noted in the press release.

The company is an Oak Brook, Ill.-based real estate investment trust.

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