BIRMINGHAM, AL-Colonial Properties Trust has added $175 million of additional borrowing capacity with help from an accordion feature in its existing unsecured revolving credit facility. The move effectively boosts the company's overall borrowing capacity to $675 million, while allowing it to continue executing its business plan without tapping into public capital markets during the next year to year and a half.
The expanded credit facility will mature in June 2012, and is being used to fund projects in the company's development pipeline and for general corporate purposes. As of Jan. 10,, the REIT had $27 million of borrowings outstanding under the facility.
Charlotte, NC-based Wachovia Bank N.A. and Bank of America Corp. were the lead arrangers for the facility, with additional commitments kicked in from a bank syndicate that was already an existing lender in the credit facility. The credit facility has an interest rate of 75 basis points over Libor. The facility also includes a competitive bid option for up to 50% of the facility.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
