KeyBank leads USD 150m Cedar Realty Trust loan financing.
BANKING AND CREDIT NEWS-February 13, 2014-- KeyBank leads USD 150m Cedar Realty Trust loan financing
(C)2014 M2 COMMUNICATIONS http://www.m2.com
13 February 2014 -- US financial services firm KeyBank National Association (NYSE: KEY) said it acted as administrative agent for New York-based REIT Cedar Realty Trust Inc (NYSE: CDR) closing on USD 150m of unsecured term loans consisting of a five-year USD 75m term loan and a seven-year USD 75m term loan.
According to Cedar Realty, the five-year term loan is initially priced at LIBOR plus 175 basis points and the entire proceeds were drawn at closing. The seven-year term loan is initially priced at LIBOR plus 200 basis points and allows for delayed draws of the proceeds through July 1, 2014.
The interest rates are subject to adjustment within a pricing grid based on the company's leverage ratio.
Cedar said it also entered into forward interest rate swap agreements which convert the LIBOR rates to fixed rates for the new term loans beginning July 1, 2014 through their maturities.
As a result, the effective fixed interest rates will be 3.37% for the five-year term loan and 4.27% for the seven-year term loan beginning July 1, 2014, based on the company's leverage ratio at closing.
Additionally, the company amended its existing USD 50m unsecured term loan, which matures in 2018, decreasing the interest rate by 20 basis points to LIBOR plus 175 basis points thereby matching the pricing grid of the new five-year unsecured term loan.
Cedar Realty Trust is a fully-integrated real estate investment trust which focuses on the ownership and operation of primarily grocery-anchored shopping centers straddling the Washington DC to Boston corridor.
Find out more at www.cedarrealtytrust.com.
1 USD = 0.608 GBP
((Comments on this story may be sent to firstname.lastname@example.org))
|Printer friendly Cite/link Email Feedback|
|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Feb 13, 2014|
|Previous Article:||Peoples Financial Services authorises common share buyback.|
|Next Article:||Ally Financial launches notes redemption.|