X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEWTOWN SQUARE, PA-GMH Communities LP, the operating partnership of GMH Communities Trust obtained a $150-million unsecured revolving credit facility from a consortium of seven lender banks. Bank of America is the administrative agent and arranged and syndicated the facility among Eurohypo AG’s New York branch, JP Morgan Chase Bank, Deutsche Bank Trust Co. Americas, Merrill Lynch Bank USA, Morgan Stanley Bank and Bank Midwest.

It has a three-year term and will be used for property acquisitions, working capital and general corporate purposes. Gary M. Holloway, chairman and CEO of the locally based specialty REIT, says it, “provides the company with additional financial flexibility” for continued growth and execution of its business plan, which focuses on student and military housing.

Availability under the facility is limited to a base loan equal to 60% of the value of the company’s unencumbered asset pool, which cannot contain fewer that five student housing properties, and 50% of the management fees it receives from military housing privatization projects and student housing projects. The REIT is the guarantor of the credit facility.

GMH can elect to have the facility bear interest at a Eurodollar rate based on Libor, or at a base rate linked to the prime rate announced by BofA, plus an “applicable rate” ranging between 1.5% and 2% for Eurodollar-rate loans, or between 0.625% and 1.375% for base-rate loans. The leverage ratio between GMH’s liabilities and the total value of its assets determines the availability rate.

The credit facility also allows GMH to obtain one or more letters of credit up to an aggregate of $20 million, or swing-line loans up to an aggregate of $25 million. GMH must pay any fees that apply to these borrowings.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.