Trade Street amends facility for preferreds buyback, CEO steps down

By Marisa Wong

Madison, Wis., Feb. 27 - Trade Street Residential, Inc. amended its $75 million senior secured credit facility with Regions Bank as lead arranger and U.S. Bank NA as a participant in connection with a separation agreement and the repurchase of its class A preferred stock, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility was amended to exclude from the definition of EBITDA non-recurring cash costs in an amount not exceeding $4 million incurred during the quarter ending March 31 in connection with the severance of various officers of the company during that quarter.

The amendment also excludes transactions related to the separation agreement and preferreds repurchase from the application of covenants relating to restricted payments and transactions with affiliates.

Under the separation agreement, effective Feb. 23, Michael D. Baumann resigned as chief executive officer and member of Trade Street's board of directors.

Also on Feb. 23, the company entered into a binding term sheet with BCOM Real Estate Fund Liquidating Trust and BREF/BUSF Millenia Associates, LLC, the holders of the company's outstanding class A preferred shares. The company agreed to redeem all of the class A preferreds for $13.8 million in cash.

The real estate investment trust is based in Aventura, Fla.

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