RPT Realty gets $350 million revolver, $310 million of term loans

By Angela McDaniels

Tacoma, Wash., Nov. 8 – RPT Realty, LP entered into an amended and restated credit agreement on Wednesday that provides for a $350 million revolving credit facility and $310 million of term loans, according to an 8-K filing with the Securities and Exchange Commission.

Plans for the $660 million credit facility were announced Oct. 30.

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

The amendment and restatement extended the maturity of the revolver to Nov. 6, 2023 from Sept. 14, 2021. The revolver may be extended for two periods of six months, subject to the payment of an extension fee of 0.075%.

The term loans consist of a $50 million term loan A-1 due Nov. 6, 2024, a $50 million term loan A-2 due Feb. 6, 2025, a $60 million term loan A-3 due March 3, 2023, a $50 million term loan A-4 due Nov. 6, 2026 and a $100 million term loan A-5 due Feb. 6, 2027.

The outstanding principal and interest under the former term loan agreement continues with an unchanged maturity date as the term loan A-3.

Pricing for the revolver is Libor plus a margin that ranges from 105 bps to 150 bps. The facility fee ranges from 15 bps to 30 bps.

Pricing for terms loans A-1, A-2 and A-3 is Libor plus 120 bps to 170 bps. Pricing for the term loans A-4 and A-5 is Libor plus 150 bps to 220 bps.

Pricing depends on the company’s leverage ratio.

Once the company obtains an investment-grade rating from either S&P or Moody’s Investors Service, the margins will vary based on the company’s ratings from 77.5 bps to 145 bps for the revolver, 85 bps to 165 bps for the terms loans A-1, A-2 and A-3 and 140 bps to 225 bps for the term loans A-4 and A-5, and the facility fee will range from 12.5 bps to 30 bps.

At closing, the revolver was undrawn.

KeyBanc Capital Markets Inc., BMO Harris Bank and Capital One, NA are joint lead arrangers for the facility. KeyBank NA is the administrative agent. BMO Harris Bank and Capital One are the 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.

Term loan proceeds were used to repay two term loans totaling $150.1 million with maturities in 2020 and 2021 and repay $50 million of 4.16% senior notes due 2024 and $50 million of 4.3% senior notes due 2026 issued to NYL Investors, LLC.

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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