Phillips Edison-ARC Shopping Center REIT in KeyBank Revolving Credit Facility

    CINCINNATI – Phillips Edison-ARC Shopping Center REIT Inc., through Phillips Edison-ARC Shopping Center Operating Partnership LP, said it entered into a $40 million senior secured revolving credit facility with KeyBank NA that includes an accordion feature of up to $250 million.

    This credit facility may be used in conjunction with the existing $10 million unsecured line of credit the company closed with KeyBank in July 2012.    The credit facility matures Dec. 24, 2015, and has two 12-month extension options which  if exercised would extend the maturity until December 2017.    The company said in a press release that it will use the credit facility “to finance the acquisition of well-occupied grocery-anchored neighborhood shopping centers having a mix of national, credit worthy retailers selling necessity-based goods and services in strong demographics markets throughout the United States.”     The credit facility will let the company pick loans priced at either LIBOR plus a margin ranging from 200 to 300 basis points depending on the company’s overall leverage, or at a base rate of the greater of the prime rate announced by KeyBank from time to time or the federal funds effective rate, plus a margin ranging from 100 to 200 basis points depending on the firm’s overall leverage.    As of Dec. 24, there were no borrowings outstanding under the credit facility.    Phillips Edison-ARC Shopping Center REIT is a public non-traded REIT co-sponsored by Phillips Edison & Co., which has acquired shopping centers throughout the U.S. worth more than $18 billion, and AR Capital LLC, a real estate investment program sponsor dedicated to governance best practices.     As of Dec. 24, Phillips Edison-ARC owned, directly or indirectly through a joint venture in which it has a controlling interest, and managed an institutional quality retail portfolio consisting of 23 grocery-anchored shopping centers totaling about 2.2 million square feet. The centers are located across the United States and include the Kroger-anchored Richmond Plaza in Augusta, GA, and the Publix at Northridge, in Sarasota, FL, anchored by Publix.    In October, the company acquired New Prague Commons, a 59,948 square foot shopping center anchored by a Coborn’s grocery store and located in New Prague, MN, a suburb of Minneapolis-St. Paul.