Shopping Center REIT Closes on $550M Credit Facility

The deal replaces a previous $300 million revolving credit facility and $125 million loan, just months before their scheduled December 2003 maturation date. "Our new credit facility decreases the trust's refinancing risk and increases our financial flexibility on more favorable terms than our previous facilities," FRIT senior vice president and CFO Larry Finger explains in a written comment. "The facility was substantially oversubscribed, reflecting the lending community's strong support of our shopping center focused business strategy."

Proceeds from the transaction will have more than one function. "The primary use of the funds are to retire the old facility and then to provide additional capacity to pursue our business strategy, which includes the acquisition of neighborhood and community shopping centers, as well as redevelopments," Andrew Blocher, FRIT vice president for capital markets and investor relations, shares with GlobeSt.com. "Our core markets are major metropolitan markets largely on the East Coast; and on the West coast, we have a presence in San Jose, CA, and other California markets," Blocher says of the company's pinpointing of future projects.