KeyBank served as administrative agent and KeyBanc Capital Markets and BMO Capital Markets acted as joint lead arrangers and syndication agents for an amended and restated senior secured revolving credit facility of up to $375 million for Jernigan Capital. The $375 million credit facility, which has an accordion feature permitting expansion up to $750 million, has a three-year term that expires March 24, 2023 and two one-year extension options.
Raymond James Bank served as documentation agent for the facility. Truist Bank, Synovus Bank and IberiaBank also joined the lender group for the amended facility. The syndicate also includes Pinnacle Bank, Trustmark National Bank, FirstBank, Renasant Bank and Triumph Bank.
The facility was upsized from $235 million and advances under the credit agreement bear interest at rates between 210 and 300 basis points over 30-day LIBOR. These spreads are 15 to 25 basis points lower than the spreads under the previous credit facility, which were 225 and 325 basis points, respectively. There is no LIBOR floor.
Borrowings under the credit facility are secured by three separate pools of collateral: one consisting of the company’s development property investments, one consisting of non-stabilized self-storage properties wholly-owned by the company, and the last consisting of stabilized self-storage properties wholly-owned by the company.
“This new facility marks another major milestone for JCAP,” John Good, chairman and CEO of Jernigan Capital, said. “With the amendment and restatement of our credit facility, we have significantly increased our access to and lowered the cost of debt capital at a time of unprecedented market volatility and economic uncertainty. Our existing banking syndicate, plus the three new banks who are entering the line with this upsizing, by their commitments have expressed confidence in our ability to continue the solid execution of our long-standing plan to build a best-of-class self-storage portfolio in some of the top markets in the United States.”
Jernigan Capital is a real estate investment trust that provides debt and equity capital to private developers, owners and operators of self-storage facilities.