Weingarten trims pricing on $500 million revolver due 2017 by 10 bps

By Susanna Moon

Chicago, April 22 - Weingarten Realty Investors reduced pricing on its $500 million unsecured revolving credit facility due April 2017 by 10 basis points to Libor plus 115 bps.

Weingarten amended the credit terms with J.P. Morgan Securities LLC and BofA Merrill Lynch as the joint bookrunners and co-arrangers, according to a company press release.

The facility contains a provision to extend the maturity date for two consecutive six-month periods.

The facility was lowered to 20 bps from 25 bps. Both the fee and the pricing are based on the company's credit ratings.

The covenants also were updated with a lower capitalization rate, which increases the valuation of the properties and therefore provides the company even greater flexibility in executing its business plan, the release noted.

The facility also contains a competitive bid option that will allow the company to request bids for up to $250 million, along with an accordion feature that allows upsizing the facility amount up to $700 million.

Proceeds will be used to fund acquisition and new development activities and for general corporate purposes.

JPMorgan Chase Bank, NA is the administrative agent; Bank of America, NA is the syndication agent; and Wells Fargo Bank, NA, PNC Bank, NA, U.S. Bank, NA, Regions Bank and Royal Bank of Canada are the documentation agents. The Bank of Nova Scotia is the managing agent. Other lenders include Capital One, NA, Northern Trust Co., Branch Banking and Trust Co., and Sumitomo Mitsui Banking Corp.

"The extended credit facility provides Weingarten with the liquidity required to continue our strategic objective of growing our portfolio, primarily through acquisitions and new development," Steve Richter, Weingarten's chief financial officer, said in the press release.

Weingarten is a commercial real estate owner, manager and developer based in Houston.

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