Whitestone REIT extends $515 million two-part credit facility

By Wendy Van Sickle

Columbus, Ohio, Sept. 19 – Whitestone REIT amended and extended its $515 million credit facility, which comprises a $250 million revolver and $265 million term loan, according to a news release.

The revolver is now scheduled to mature on Sept. 16, 2026, with two additional six-month options to extend the maturity date to Sept. 16, 2027. The $265 million term loan now matures on Jan. 31, 2028.

The facility can be increased to $715 million through an accordion feature.

Borrowings under the facility accrue interest at an adjusted term SOFR plus an applicable margin based upon the company’s then existing leverage.

The revolver has an initial interest rate of SOFR plus 160 basis points and a 10 bps credit spread adjustment.

Further, Whitestone entered into interest rate swaps to fix the interest rates on the $265 million term loan. The term loan has the following rates: 2.16% plus 1.55% through Oct. 28, 2022; 2.8% plus 1.55% from Oct. 29, 2022 through Jan. 31, 2024; and 3.42% plus 1.55% from Feb. 1, 2024 through Jan. 31, 2028.

The recast facility also features an environmental, social and governance pricing provision whereby the applicable interest rate margin can be adjusted based on the company’s performance on certain sustainability performance targets.

“The renewed credit facilities’ attractive terms reflect our strengthening balance sheet and provides us additional liquidity and financial flexibility,” Dave Holeman, Whitestone’s chief executive officer, said in the release.

The co-lead arrangers and joint bookrunners for the facility were BMO Capital Markets Corp., Truist Bank, Capital One, NA and U.S. Bank NA. BMO is the administrative agent, and Truist Bank will continue to be the syndication agent.

Capital One and U.S. Bank will serve as documentation agents, and BMO will serve as the sustainability structuring agent.

Houston-based Whitestone is a real estate investment trust that owns, manages, operates, leases and repositions and redevelops community-centered properties.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.