RPT Realty gets commitments for $660 million amended, restated loans

By Sarah Lizee

Olympia, Wash., Oct. 30 – RPT Realty received binding commitments for a $660 million amended and restated unsecured credit facility, an increase of $100 million over its existing unsecured credit facilities, according to a press release.

The amended and restated unsecured credit facility the company expects to enter into comprises a $350 million revolving line of credit and $310 million of unsecured term loans.

The company expects to sign and close on the facility in November, subject to the satisfaction of some conditions.

The facility will include an accordion feature that allows the company to increase the total potential capacity up to $1 billion, subject to some conditions.

The new revolver will be extended to November 2024 from September 2021 and will include two six-month extension options.

Pricing for the revolver will be Libor plus 110 basis points based on the company’s leverage ratio, representing a 25-bps improvement from the current rate under the existing revolver.

The facility would be 15 bps, based on the company’s leverage ratio.

The company plans to get a $50 million term loan due February 2025 and a $100 million term loan due February 2027.

Pricing for the term loan due 2025 will be Libor plus 120 bps, and pricing for the term loan due 2027 will be Libor plus 160 bps, both based on the company’s leverage ratio.

The company plans to use the proceeds to repay two term loans totaling $150 million with maturities in 2020 and 2021.

The company does not expect to incur prepayment penalties in connection with the debt repayments.

The company also plans to enter into a new $50 million term loan due November 2024 and a $50 million term loan due November 2026.

Pricing for the term loan due 2024 will be Libor plus 120 bps, and pricing on the term loan due 2026 will be Libor plus 160 bps, also based on the company’s leverage ratio.

The company plans to use the proceeds from these term loans to repay debt with maturities between 2020 and 2026.

The amended and restated term loans will also include a $60 million unsecured term loan with an unchanged maturity date of March 2023 and improved pricing of Libor plus 120 bps, a 45-bps improvement from the current loan.

KeyBanc Capital Markets Inc., BMO Harris Bank and Capital One, NA are co-lead arrangers for the facility with KeyBank as administrative agent and BMO Harris Bank and Capital One as syndication agents. Branch Banking and Trust Co. is the documentation agent.

During the quarter ended Sept. 30, the company entered into forward interest rate swap agreements with a total notional amount of $150 million, of which $50 million will mature in January 2025 and $100 million will mature in January 2027.

These forward interest rate swaps effectively fix the Libor component at a weighted average interest rate of 1.37% before consideration of any applicable margin and will commence once the company’s existing interest rate swaps mature.

The existing interest rate swaps have a weighted average fixed interest rate of 1.59% with a total notional amount of $150 million, of which $75 million will mature in May 2020 and $75 million will mature in May 2021.

New York-based RPT Realty owns and operates a portfolio of open-air shopping destinations.

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