Centerspace amended and extended its existing $250 million revolving credit facility. The new facility includes an accordion feature for up to $400 million and matures in September 2025 with two optional six-month extensions. In addition to the new line of credit, the company repaid its existing bank term loans totaling $145 million in full with proceeds from the issuance of $125 million in unsecured senior notes as well as the additional proceeds from its KMS portfolio refinance.
Bank of Montreal served as administrative agent for the extension of the credit facility, with BMO Capital Markets, BofA Securities and PNC Capital Markets serving as joint lead arrangers and joint book runners.
“This recast completes a series of financing activities this quarter that meaningfully lower our average cost of borrowing and extend our average duration,” Mark O. Decker Jr., president and CEO of Centerspace, said. “The completed financing activities decreased our weighted average interest from 3.7% at June 30, 2021, to 3.35% and our weighted average maturities from 4.9 years at June 30, 2021, to 7.6 years. We’re grateful for our bank group’s work to help Centerspace build greater financial flexibility. These actions enhance our ability to compete in today’s environment.”
