Black Creek Diversified Property Fund Secures $775 Million Credit Facility

The operating partnership subsidiary of Black Creek Diversified Property Fund Inc., a publicly registered NAV REIT formerly known as Dividend Capital Diversified Property Fund, has entered into a $775 million credit facility with a syndicate of lenders to amend and restate its existing senior unsecured revolving and term credit facility.

The funds are available for general business purposes including refinancing existing debt and financing the acquisition of permitted investments, including commercial properties.

Black Creek Diversified Property Operating Partnership LP secured a $450 million revolving credit facility that matures on January 31, 2023 and contains two six-month extension options, and a $325 million term loan due on January 31, 2024. The credit facility can be increased to a total of $1 billion, subject to certain conditions.

Based on its current consolidated leverage ratio, the company may borrow at LIBOR, plus 1.50 percent and LIBOR, plus 1.40 percent for the revolving credit facility and term loan, respectively.

The lenders include Bank of America N.A., Wells Fargo Bank N.A., PNC Bank N.A., JPMorgan Chase Bank N.A., US Bank N.A., Regions Bank, BMO Harris Bank N.A., Capital One N.A., Associated Bank N.A., Bank of the West, MUFG Union Bank N.A., and Raymond James Bank N.A.

Black Creek Diversified Property Operating Partnership also amended its existing senior unsecured term loan credit agreement by securing a $200 million unsecured term loan, which may be increased to up to $400 million under certain conditions.

The loan matures on February 27, 2022 and has a primary interest rate based on LIBOR, plus a margin ranging from 1.25 percent to 2.05 percent.

The lenders are Wells Fargo Bank N.A., Regions Bank; Capital One N.A., MUFG Union Bank N.A., and Raymond James Bank N.A.

Assuming the credit facility and senior unsecured term loan were in-place as of September 30, 2018, on a pro forma basis, this would have resulted in a decrease of the company’s overall weighted-average interest rate from 3.95 percent to 3.77 percent and an increase of its weighted-average debt maturity from 2.2 years to 3.9 years, before consideration of any available extension options.

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