Tanger Factory gets $235 million unsecured term loan

By Sara Rosenberg

New York, June 11 - Tanger Factory Outlet Centers Inc. closed on a new $235 million unsecured three-year term loan, according to a news release.

Bank of America and Wells Fargo acted as the joint lead arrangers on the deal, with Bank of America the administrative agent and Wells Fargo the syndication agent.

Pricing on the loan is Libor plus 160 basis points, with the spread adjusting over time, based upon the debt ratings of the company.

Proceeds are being used to repay the company's only remaining mortgage loan with a principal balance of $170.7 million. Upon the repayment of this mortgage, which is expected to occur by the end of June, the company's entire portfolio of wholly owned properties will be unencumbered.

The remaining proceeds of $62.8 million, net of closing costs, will be applied against amounts outstanding on the company's unsecured lines of credit and to settle interest rate lock protection agreements.

Tanger is a Greensboro, N.C.-based real estate investment trust that owns and operates outlet centers.

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