Weingarten Realty Investors (NYSE: WRI) announced today that it has amended its $500 million unsecured revolving credit facility. The facility will mature in April 2017, with a provision to extend the maturity date for two consecutive six-month periods, at the Company’s option. Borrowing rates under the facility are at a margin over LIBOR, plus a facility fee. The borrowing margin improved to LIBOR plus 115 basis points, a decrease of 10 basis points from the previous margin of 125 basis points. Further, the facility fee has been reduced from 25 basis points to 20 basis points. Both the borrowing margin and facility fee are priced off a grid that is tied to Weingarten's senior unsecured credit ratings. The covenants on the facility have been updated, including lowering the capitalization rate, which increases the valuation of the properties, and therefore provides the Company even greater flexibility in executing its business plan. The facility also contains a competitive bid option that will allow the Company to request bids for up to $250 million, along with an accordion feature, which allows the Company to increase the facility amount up to $700 million. Weingarten intends to use the proceeds from such facility to fund acquisition and new development activities, and for general corporate purposes.
J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, served as joint book runners and co-arrangers, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, Wells Fargo Bank, National Association, PNC Bank, National Association, U.S. Bank, National Association, Regions Bank and Royal Bank of Canada as documentation agents, and The Bank of Nova Scotia as managing agent. Other lenders involved in this transaction include Capital One, N.A., The Northern Trust Company, Branch Banking and Trust Company, and Sumitomo Mitsui Banking Corporation.
Steve Richter, Weingarten’s Chief Financial Officer, stated, “We appreciate the long-term commitment of our bank group, and the confidence they have in our organization. The extended credit facility provides Weingarten with the liquidity required to continue our strategic objective of growing our portfolio, primarily through acquisitions and new development.”
About Weingarten Realty Investors
Weingarten Realty Investors (NYSE: WRI) is a commercial real estate owner, manager and developer. At December 31, 2012, the Company owned or operated under long-term leases, either directly or through its interest in real estate joint ventures or partnerships, a total of 292 developed income-producing properties and 2 properties under various stages of construction and development. The total number of properties includes 288 neighborhood and community shopping centers and 6 other operating properties located in 21 states spanning the country from coast to coast representing approximately 53.7 million square feet. To learn more about the Company’s operations and growth strategies, please visit www.weingarten.com.