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ROCKVILLE, MD-Federal Realty Trust has closed a new $372-million unsecured term loan facility from several lenders, including Citicorp, Bank of America, Comercia Bank, Wells Fargo, Raymond James Bank and JP Morgan Chase.

The company’s original loan term had been for $200 million, due on Nov. 6, 2009. Federal Realty says that demand for its credit enabled it to upsize the loan to its final number of $372 million. Proceeds from the financing were used to retire the 8.75% notes under the $200-million facility. The new term loan facility, which has an annual interest rate set at LIBOR–subject to a 1.50% floor–plus 300 basis points, will mature in July 2011. End result: Federal Realty will have no additional debt maturities until 2011. Federal Realty was unable to arrange a call with GlobeSt.com in time for publication.

“Even in this difficult credit environment, we were able to upsize the term loan from $200 million to $372 million because of the strong support we received from our lenders, with seven of our existing lenders increasing their collective term loan exposure from $133 million to $315 million,” Andrew Blocher, senior vice president and chief financial officer of Federal Realty, says in a prepared statement.

Federal Realty has also bolstered its financial position with several secured financings. In April, it closed a $24.1 million, ten-year loan secured by Rollingwood Apartments in Silver Spring, MD at an effective annual interest rate of 5.72%. It also obtained a commitment of approximately $139 million for a five-year loan secured by four retail assets located in Northern Virginia at an effective annual rate of 7.72%. This secured financing is expected to close during the second quarter of 2009.

Federal Realty evaluated the possibility of a modest common equity raise, but elected not to proceed with the transaction given conditions in the equity markets and the Trust’s shares, according to previous comments by president and CEO Donald C. Wood.

“With the recent increase in our stock price we saw a unique opportunity to pursue a modest equity offering to provide us with additional balance sheet flexibility over and above the comfort provided by our debt financing activities,” Wood said. “Our decision not to execute the transaction reflects our comfort with our anticipated capital position and our belief that issuing equity capital at this price without a specific use of proceeds was not in the best interest of our shareholders.”

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