US Federal Properties seeks $125 million three-year secured revolver

By Susanna Moon

Chicago, Oct. 1 - US Federal Properties Trust, Inc. expects to enter into a $125 million three-year secured revolving credit facility, according to an FWP filing with the Securities and Exchange Commission.

The company said it is in negotiations to finalize the terms of the credit agreement but has not obtained a commitment from the lenders for the facility.

Interest will be at Libor plus a spread ranging from 300 basis points to 375 bps, depending on the company's leverage ratio. There will be a floor of 1.5% for Libor.

The company said it expects to pay a fee to the lenders based on the unused portion of the facility.

Proceeds will be used to fund acquisitions, developments, redevelopments and capital expenditures and for general corporate purposes.

The facility is expected to have an accordion feature to increase the size by up to $50 million if new or additional commitments are obtained.

Deutsche Bank Securities Inc., UBS Securities LLC, KeyBanc Capital Markets Inc., Raymond James & Associates, Inc., RBC Capital Markets Corp. and BB&T Capital Markets, a division of Scott & Stringfellow, LLC are the lenders.

Deutsche Bank Securities Inc. is the administrative agent and collateral agent, and Deutsche Bank Securities Inc. and UBS Securities LLC are co-lead arrangers and joint bookrunners. UBS Securities LLC is syndication agent. KeyBanc Capital Markets Inc., Raymond James & Associates, Inc. and RBC Capital Markets Corp. are co-documentation agents.

US Federal Properties is a real estate investment trust based in Kansas City, Mo.

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