Trustreet amends facility to reduce interest on draws by 75 bps, add accordion feature

By Jennifer Chiou

New York, Oct. 2 - Trustreet Properties Inc. amended its $450 million credit facility, reducing the interest on revolver draws by 75 basis points to Libor plus 150 bps based on the company's consolidated leverage ratio.

The interest rate is now Libor plus 100 bps if the consolidated leverage ratio is 45% or less, Libor plus 125 bps for a ratio of 45% to 50%, Libor plus 150 bps for a ratio of 50% to 60% and Libor plus 175 bps for a ratio of more than 60%. Currently the level is Libor plus 150 bps.

Bank of America, NA is administrative agent.

The facility consists of $175 million in revolving loan commitments and $275 million in term loans.

In addition, the unused commitment fee was reduced by five bps to 20 bps and a new accordion feature was added, which allows the company to increase the facility by up to an additional $200 million in either the revolver or term loan.

The company added that the availability under the facility was enhanced by increasing the advance rate by 5% to 55% and by lowering the capitalization rate by 1% to 8%.

Trustreet is an Orlando, Fla.-based self-advised restaurant real estate investment trust.

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