ROCKVILLE, MD-Federal Realty Investment Trust has closed on a new $400-million unsecured revolving credit facility. It plans to use the proceeds to retire the outstanding obligations under its previous $300-million revolving credit facility, scheduled to mature on July 27, 2011. It will also use the proceeds for general corporate purposes.

Of course, there is also a possibility that the REIT will tap the funds--or the replenished credit facility--for acquisitions, CFO Andrew Blocher tells GlobeSt.com. “We have a lot in the works now, with new developments and several acquisitions we are looking at,” he says. “So that is a possibility as well, but there is nothing definite to say.” In short, he says, the new facility will provide the REIT with capital for growth one way or another.

As a result of the refinancing, Federal Realty has no additional debt maturities until July 2012. The new revolving credit facility carries an interest of LIBOR plus 115 basis points and will mature in July 2015, with an option to extend for an additional year. The facility also has an accordion feature that allows Federal Realty to upsize the facility to $800 million.

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According to Blocher, the pricing the company received for the facility was very good, although he declined to discuss specifics. Due to the demand for the REIT’s credit, it was able to get the deal done at a tighter spread than comparable credits. In fact, Blocher says it established a new pricing standard for comparable REIT deals. In general, REITs have raised about $36 billion year to date in the capital markets.

Federal Realty invests in high quality retail assets in the Northeast, Mid-Atlantic and California. In the District, its holdings include Friendship Center, located at 5333 Wisconsin Ave., NW and Sam's Park & Shop, located at the intersection of Connecticut Avenue and Ordway, NW.