The amended KeyBank unsecured facility has been increased from to $40 million from $30 million and the maturity date extended from November 2005 to November 2007. The amended unsecured facility has the option of a one-time increase to $50 million, available up to Dec. 31, 2005. In addition, the original provision of the unsecured facility which required an annual 30-day pay down to zero has been modified to a pay down to $20 million with the additional option, at the agent's discretion, of a 90-day extension.
The amendment to the unsecured facility changes the interest rateoptions to Libor plus 350 basis points--from Libor plus 400 basis points--or the KeyBank Prime Rate Spread of prime plus 275 basis points, from prime plus 250. The previous annual facility fee has been removed and replaced with a one-time commitment fee that will be capitalized and amortized to interest expense over the life of the loan agreement.
AmeriVest is currently negotiating a similar agreement with KeyBank onits secured credit facility. "We are pleased to enter into this newrelationship with KeyBank and believe the loan restructuring allows usincreased capacity and flexibility at a more attractive price," says Charles Knight, president and chief operating officer of AmeriVest. "KeyBank has been responsive to our needs and we feel they will be a valuable business partner to AmeriVest as we continue to grow."
AmeriVest provides what it calls "Smart Space of Small Business" services in Denver, Phoenix, Dallas and Indianapolis.
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