Trade Street amends facility’s borrowing base terms, restrictions

By Marisa Wong

Madison, Wis., Oct. 21 – Trade Street Residential, Inc. entered into a fourth amendment to its amended and restated credit agreement dated Jan. 31, 2014 with Regions Bank as administrative agent on Oct. 16, according to an 8-K filing with the Securities and Exchange Commission.

The company amended the credit agreement to, among other things,

• Extend the time frame for when the limitation on how much of the aggregate borrowing base value is allowed to be attributed to a single asset to Jan. 1, 2016;

• Delay the commencement of the limitation on how much of the aggregate borrowing base value is allowed to be attributed to assets located in a single metropolitan area to Jan. 1, 2016;

• Provide that until Jan. 1, 2016, the approval of all lenders is required in order to add a property as a borrowing base property, and, after that, the approval of only some lenders is required in order to add a property as a borrowing base property;

• Reduce the minimum tangible net worth required to be maintained by the company to $123 million from $158 million; and

• Amend the restrictions on dividends and other cash payments to permit the company to redeem its class A preferred stock, as long as any transfers of assets as consideration for the redemption are permitted under the credit agreement and the amount of cash payments for the redemption, whether in one transaction or a series of transactions, does not exceed $5.5 million total.

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

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