Whitestone REIT amended and extended its $515 million credit facility, comprised of a $250 million revolver and $265 million term loan. The facility, which can be increased to $715 million through an accordion feature is scheduled to mature, for the $250 million revolver, on Sept. 16, 2026, with two additional six-month options to extend the maturity date to Sept. 16, 2027, and for the $265 million term loan on January 31, 2028. Borrowings under the facility accrue interest (at the operating partnership’s option) at a base rate or an adjusted term SOFR plus an applicable interest rate margin based upon the company’s then existing leverage. The revolver has an initial interest rate of SOFR plus 1.60% and a 10-basis point credit spread adjustment. In addition, the company entered into interest rate swaps to fix the interest rates on the $265 million term loan. The term loan has the following rates:
- 2.16% plus 1.55% through Oct. 28, 2022
- 2.80% plus 1.55% from Oct. 29, 2022 through Jan. 31, 2024
- 3.42% plus 1.55% from Feb. 1, 2024 through Jan. 31, 2028
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The recast facility also features an environmental, social and governance pricing provision whereby the applicable interest rate margin can be adjusted based on the company’s performance on certain sustainability performance targets.
“The renewed credit facilities’ attractive terms reflect our strengthening balance sheet and provides us additional liquidity and financial flexibility,” Dave Holeman, CEO of Whitestone, said. “We appreciate the support of our bank group, and we are encouraged by the new banking relationships that participated in the transaction.”
The co-lead arrangers and joint-book runners for the facility were BMO Capital Markets, Truist Bank, Capital One and U.S. Bank. BMO Capital Markets will continue to be the administrative agent for the credit facility and Truist Bank will continue to be the syndication agent. Capital One and U.S. Bank will serve as documentation agents and BMO Capital Markets will serve as the sustainability structuring agent. Deutsche Bank, Associated Bank and S&T Bank are also participants in the credit facility.
Numbers in this article are based on the company’s current leverage ratio as defined in the facility. Please see today’s 8-K for more detail.
