InvenTrust Properties Corporation, a publicly registered non-traded real estate investment trust, has closed on a $750 million amended and restated unsecured credit facility, increasing the company’s borrowing capacity by $150 million. It is available for general corporate purposes, including acquisitions and other working capital uses.
“Our newly expanded credit facility provides an opportunity for InvenTrust to benefit from a stronger capital position, better pricing and increased balance sheet flexibility,” said Nicole Grimaldi, SVP of capital markets of InvenTrust Properties.
The company said that the additional access to capital will enable it to pursue more growth opportunities, with greater efficiency and transactional certainty.
“We are pleased to have the confidence and support of our lenders as we continue to execute on the company’s strategy of acquiring high-quality, grocery-anchored assets in key growth markets in the Sun Belt region,” Grimaldi added.
The amended and restated terms include $350 million in unsecured revolving line of credit, an increase of $50 million, with an extended maturity date to December 21, 2022 from February 2, 2019. Based on the company’s leverage, the pricing is LIBOR plus 105 basis points, a 35-basis point improvement from the previous rate. This revolving line of credit is co-led by KeyBanc Capital Markets Inc., Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner and Smith Incorporated, JP Morgan Chase Bank, N.A., PNC Bank National Association and BMO Harris Bank, N.A.
InvenTrust will also benefit from $250 million unsecured term loan, an increase of $50 million, which extends to December 21, 2023 from January 15, 2021. Based on the company’s leverage, the pricing is LIBOR plus 120 basis points, a 10-basis point improvement from the previous rate. This term loan is co-led by Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner and Smith Incorporated and U.S. Bank National Association.
Further adding to the company’s borrowing capacity is a $150-million unsecured term loan, an increase by $50 million, which extends to a maturity date of June 21, 2024 from November 5, 2022. Based on the company’s leverage, the pricing is LIBOR plus 120 basis points, a 40-basis point improvement from the previous rate. This term loan is co-led by Wells Fargo Securities, LLC, PNC Bank National Association and U.S. Bank National Association.
The capitalization rate used to calculate certain financial covenants under this facility was set at 6.75 percent, a 25-basis point improvement from the previous rate.
InvenTrust Properties, formerly known as Inland American Real Estate Trust, focuses on open air retail centers in growth markets. The offering was declared effective in August 2005 and closed in April 2009 after raising $8.4 billion, according to Summit Investment Research. The company became a self-managed REIT in 2014 and oversees a multi-billion-dollar portfolio of 78 retail properties.