Independence Realty amends $1.1 billion facility, adds $400 million term loan

By William Gullotti

Buffalo, N.Y., July 27 – Independence Realty Trust, Inc. announced that its operating partnership, Independence Realty Operating Partnership, LP, closed on a new $400 million term loan on July 25 as part of amending and restating its $1.1 billion unsecured floating-rate credit facility, according to a press release on Wednesday and an 8-K filing with the Securities and Exchange Commission.

The facility, initially composed of a $500 million revolver and a $200 million term loan, was boosted to $1.1 billion by the addition of the new term loan. The borrower may request to increase the facility size to $1.5 billion, subject to certain terms and conditions.

The restated agreement changes the facility’s interest rate to SOFR from Libor, with the revolver subject to a margin ranging from 125 basis points to 200 bps and the existing term loan subject to a margin ranging from 120 bps to 190 bps.

Margins are determined by the company’s consolidated leverage ratio.

No other material changes were made to either the revolver or the existing term loan, both of which still mature 2026.

The new $400 million term loan matures Jan. 28, 2028, bearing interest at SOFR plus a margin ranging from 115 bps to 180 bps. The margin is also determined by the consolidated leverage ratio.

At closing, the margins were set at 125 bps for the revolver, 120 bps for the existing term loan and 115 bps for the new term loan.

If the company attains investment-grade ratings, there is a separate ratings-based pricing grid.

Proceeds from the new term loan were used to repay and retire two 2024-maturing term loans from the previous facility totaling $300 million and reduce the revolver balance by $100 million.

At closing, the revolver’s outstanding balance was $170.5 million.

KeyBank NA is the administrative agent.

KeyBanc Capital Markets, Inc., Citibank, NA and Huntington National Bank are the joint lead arrangers for the revolver.

KeyBanc is also a joint lead arranger for the existing term loan with Capital One, NA and Regions Capital Markets.

Citibank and KeyBanc are also the joint bookrunners for the revolver and existing term loan.

KeyBanc, Capital One and PNC Capital Markets LLC are the joint lead arrangers and joint bookrunners for the new term loan.

Independence Realty is a Philadelphia-based real estate investment trust that owns apartment properties.

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