Acadia Realty details upsizing of $750 million restated facility

By William Gullotti

Buffalo, N.Y., April 16 – Acadia Realty Trust and Acadia Realty LP entered into a third amended and restated $750 million credit facility with Bank of America, NA as administrative agent on Monday and detailed the terms in an 8-K filing with the Securities and Exchange Commission on Tuesday.

As previously reported, the oversubscribed facility replaced and extended the company’s existing $700 million credit facility.

The amended facility consists of a $400 million term loan and a $350 million revolver, which was upsized from $300 million. The $750 million overall borrowing capacity may be expanded to $900 million, exercisable in $50 million increments as an accordion for the revolver or as additional incremental term loans.

The revolver’s maturity was extended to April 15, 2028 from June 29, 2025. There are two additional six-month extension options.

The amended revolver also includes a $60 million sublimit on letters of credit.

Revolver borrowings bear interest at SOFR plus a margin ranging from 125 basis points to 170 bps, determined by the company’s ratio of total debt to total asset value. There is also a facility fee on the unused commitments, also determined by leverage, that ranges from 20 bps to 35 bps.

Subject to the trust’s debt ratings and if the operating partnership makes an irrevocable credit rating election, the margin can be determined via a ratings-based grid. Borrowings in this case will continue to bear SOFR-based interest with a margin ranging from 72.5 bps to 140 bps. The range of the facility fee would also change, spanning between 12.5 bps to 30 bps.

The term loan’s maturity was extended to match the revolver’s April 15, 2028 maturity from June 29, 2026, likewise including two additional six-month extension options.

Term borrowings bear interest at SOFR plus a margin ranging from 140 bps to 200 bps, determined by the same leverage ratio used for the revolver.

As with the revolver, the leverage-based margins for the term loan may be converted to ratings-based margins. Such an update would occur simultaneously and under the same circumstances. The ratings-based margins for the term loan will range from 80 bps to 160 bps.

The overall credit facility’s margins and fees were leverage-based at closing. The term margin was set at 140 bps, and the revolver’s margin was set at 125 bps, with a 20-bps facility fee.

BofA Securities, Inc. and Wells Fargo Securities, LLC served as joint bookrunners, also serving as joint lead arrangers alongside Truist Securities, Inc. and PNC Capital Markets LLC.

Wells Fargo Bank, NA, Truist Bank and PNC Bank, NA are the syndication agents.

Acadia Realty Trust is a Maryland real estate investment trust.

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