Retail Properties Of America Reports Amendment, Extension Of $850M Unsecured Revolving Line Of Credit

Author: Benzinga Newsdesk | July 08, 2021 03:17pm

Retail Properties of America, Inc. (NYSE:RPAI) (the "Company") today announced the closing of the amendment and extension of its $850.0 million unsecured revolving line of credit (Unsecured Revolving Line of Credit).

This Unsecured Revolving Line of Credit amendment and extension:

• Maintains the Company's existing borrowing capacity of $850.0 million;
• Expands the available accordion feature, enabling the Company to increase borrowing capacity by up to $750.0 million to a total of $1.6 billion, subject to lender approval;
• Maintains existing financial covenants as well as the 6.50% capitalization rate used to calculate certain financial covenants;
• Incorporates a sustainability metric, based on targeted greenhouse gas emission reductions, which permits the Company to reduce the applicable grid-based spread by one basis point annually upon attainment;
• Maintains existing leverage-based grid pricing;
• Improves ratings-based grid pricing by 10-15 basis points from the previous ratings-based grid across various points on the investment grade ratings spectrum;
• Extends the maturity date from April 22, 2022 to January 8, 2026; and
• Includes retention of two six-month extension options, exercisable at the Company's sole election.

KeyBanc Capital Markets Inc., Wells Fargo Securities, LLC, Capital One, National Association, PNC Capital Markets LLC, Regions Capital Markets and TD Bank, N.A. served as co-lead arrangers, with KeyBank National Association serving as administrative agent and Wells Fargo Bank, National Association serving as syndication agent. Bank of America, N.A., The Bank of Nova Scotia, Citibank, N.A., and U.S. Bank National Association served as documentation agents.

ABOUT RPAI

Posted In: RPAI