RPT Realty amends, restates upsized $810 million facility

By William Gullotti

Buffalo, N.Y., Aug. 23 – RPT Realty, LP entered into a sixth amended and restated credit agreement with KeyBank NA as administrative agent on Aug. 18, according to an 8-K filing with the Securities and Exchange Commission.

The amended and restated agreement increased the facility’s overall capacity to $810 million from $660 million, reflecting a $150 million increase in the revolver. The facility now consists of a $500 million revolving credit facility and $310 million of term loans.

The facility’s accordion feature was also amended, granting RPT five exercisable requests to increase the capacity of the revolver or term facilities or adding additional term loans by up to $440 million for a maximum aggregate amount not to exceed $1.25 billion.

The amendment and restatement extended the maturity of the revolver to Aug. 18, 2026 from Nov. 6, 2023. The revolver may be extended for two periods of six months, subject to the payment of an extension fee of 6.25 basis points.

Revolver drawdowns will bear interest at SOFR plus 10 bps CSA plus a margin ranging from 105 bps to 150 bps. The facility fee ranges from 15 bps to 35 bps.

The margin and fee are currently dependent upon the company’s leverage ratio and were set at 110 bps and 15 bps, respectively.

Once the company obtains an investment-grade rating from either S&P or Moody’s, pricing will vary based on the company’s credit ratings, from 72.5 bps to 140 bps for the margin and 12.5 bps to 30 bps for the facility fee.

At closing, the revolver had a $154,958,000 balance.

The term loan facilities include four tranches, which have been re-evidenced as loans under the amended agreement, with maturity dates scheduled on Nov. 6, 2026 (term loan A-1 advances), Feb. 5, 2027 (term loan A-2 advances), Aug. 18, 2027 (term loan A-3 advances) and Feb. 18, 2028 (term loan A-4 advances). The roughly $310,584,000 million of principal and interest that was outstanding at closing will continue to be outstanding under the amended agreement until repaid.

Interest on the term loans were swapped to an all-in weighted average fixed rate of 2.62%.

Included, but not implemented, in the amendments is a sustainability-linked pricing component whereby the applicable interest rate margin can be adjusted if the company meets certain specified KPIs or ESG ratings. If implemented unaltered, the sustainability-linked pricing would increase or reduce applicable interest rate margins by up to 2 bps.

KeyBanc Capital Markets Inc., BMO Capital Markets, Capital One, NA and JPMorgan Chase Bank, NA are joint lead arrangers and joint bookrunners for the facility with Truist Securities, Inc. and Regions Capital Markets also serving as joint lead arrangers.

BMO Harris Bank, Capital One and JPMorgan are the syndication agents. Truist and Regions are also documentation agents.

The company is the majority-owned operating partnership of RPT Realty, a New York-based real estate investment trust that owns and operates a portfolio of open-air shopping destinations.

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