Daily News: December 27, 2012

KeyBank Provides $40MM Revolver to Phillips Edison-ARC


Phillips Edison-ARC Shopping Center REIT entered into a $40 million senior secured revolving credit facility with KeyBank with an accordion feature up to $250 million, subject to the terms and conditions of the facility.

This facility may be used in conjunction with the existing $10 million unsecured line of credit the company closed with KeyBank in July 2012. It matures on Dec. 24, 2015, with two 12-month extension options which, if exercised, would extend the maturity until December 2017.

It will enable the company to select loans that are priced at either LIBOR plus a margin ranging from 200 to 300 basis points depending on the company’s overall leverage, or 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 company’s overall leverage.

The company will use the credit facility to finance the acquisition of well-occupied grocery-anchored neighborhood shopping centers throughout the U.S. As of Dec. 24, 2012, there are no borrowings outstanding under the credit facility.