Armada Hoffler Properties Closes on New $200 Million Unsecured Credit Facility
Armada Hoffler Properties, Inc. (NYSE:AHH) today announced that it closed on a new $200 million unsecured credit facility.
The credit agreement provides for a $150 million senior unsecured revolving credit facility and a $50 million senior unsecured term loan. The new facility replaces the Company’s existing $155 million secured revolving credit facility, which was scheduled to mature on May 13, 2016.
The credit facility includes an accordion feature that allows the total commitments to be increased to $350 million, subject to certain conditions.
Interest rates on the facility range between LIBOR plus 1.40% to 2.00% for the revolving credit facility and LIBOR plus 1.35% to 1.95% for the term loan, depending on corporate leverage levels. The Company entered into an interest rate swap to fix the LIBOR rate of the term loan. The credit facility has an initial four-year term with a scheduled maturity date of February 20, 2019 and an option to extend for one additional year to February 20, 2020. The term loan will mature in five years with a scheduled maturity date of February 20, 2020.
“We are delighted with our new, expanded and, most importantly, unsecured credit facility,” said Mike O’Hara, Chief Financial Officer. “We believe the expanded facility demonstrates the continued strength of our financial position and provides us with greater flexibility to fund future growth. We are pleased to have the continued opportunity to work with top tier banks, having earned their confidence and support in both our business model and management team.”
The facility closed Friday, February 20, 2015. The syndicate of banks was co-led by Bank of America and Regions Bank. PNC Bank was also a participant in the transaction.
At closing, the Company borrowed $54 million under the revolving credit facility and $50 million under the term loan to repay, in full, all outstanding amounts due under the prior credit facility and to repay approximately $39 million of other secured debt for the sole purpose of unencumbering eight properties.
The Company intends to use future borrowings under the facility for general corporate purposes, including funding acquisitions, development and redevelopment of properties in the Company’s portfolio and for working capital.
About Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. is a full service real estate company with extensive experience developing, building, owning and managing high-quality, institutional-grade office, retail and multifamily properties in attractive markets throughout the Mid-Atlantic United States. The Company has elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes.
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, and other documents filed by the Company with the Securities and Exchange Commission.
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