Post Properties Announces Refinancing of $330 Million Unsecured Revolving Lines of Credit & New $300 Million Unsecured Bank T...
20 Gennaio 2012 - 12:07AM
Business Wire
Post Properties, Inc. (NYSE: PPS), an Atlanta-based real estate
investment trust (the “Company”), today announced that its
operating partnership, Post Apartment Homes, L.P. (the “Operating
Partnership”), amended its $300 million unsecured syndicated
revolving line of credit facility and its $30 million unsecured
cash management line of credit facility. The Operating Partnership
also entered into a new $300 million unsecured bank term loan
facility, under which it currently has $100 million of outstanding
borrowings, with $200 million of additional borrowing availability
through July 17, 2012.
The amended credit facility, provided by a syndicate of eleven
financial institutions and arranged by Wells Fargo Securities, LLC
and J.P. Morgan Securities LLC, provides for a $300 million
unsecured revolving line of credit which has an initial four-year
term maturing in January 2016, with a one-year extension option.
The new credit facility amends the Operating Partnership’s existing
$300 million unsecured revolving credit facility. The amended
credit facility has a current stated interest rate of the London
Interbank Offered Rate (LIBOR) plus 1.40% and requires the payment
of annual facility fees currently equal to 0.30% of the aggregate
loan commitments. The credit facility provides for the interest
rate and facility fee rate to be adjusted up or down based on
changes in the credit ratings of the Operating Partnership’s senior
unsecured debt. The credit facility contains representations,
financial and other affirmative and negative covenants, events of
defaults and remedies typical for this type of facility.
The amended unsecured cash management line of credit facility
with Wells Fargo Bank, N.A., provides for a $30 million unsecured
line of credit which has an initial four-year term maturing in
January 2016, with a one-year extension option. The new credit
agreement amends the Operating Partnership’s existing $30 million
unsecured revolving cash management line. The cash management line
carries pricing and terms, including financial covenants,
substantially consistent with those of the amended syndicated
credit facility described above.
The new unsecured bank term loan facility, provided by a
syndicate of eight financial institutions and arranged by Wells
Fargo Securities, LLC, PNC Capital Markets LLC and SunTrust
Robinson Humphrey, Inc., provides for a $300 million unsecured bank
term loan which has an initial six-year term maturing in January
2018, with two six-month extension options. The term loan facility
has a current stated interest rate of LIBOR plus 1.90% and requires
the payment of unused facility fees equal to 0.25% of the aggregate
undrawn loan commitments through July 17, 2012. The credit facility
provides for the interest rate to be adjusted up or down based on
changes in the credit ratings of the Operating Partnership’s senior
unsecured debt. The credit facility contains representations,
financial and other affirmative and negative covenants, events of
defaults and remedies typical for this type of facility, and which
are substantially consistent with those of the amended syndicated
credit facility described above. The Operating Partnership
separately entered into interest rate swap agreements to fix the
variable interest cost associated with this term loan facility,
resulting in an initial effective average fixed interest rate, once
fully drawn, of approximately 3.44%.
In December 2011, the Operating Partnership used $135 million of
borrowings under its revolving credit facility and available cash
to finance the prepayment of $184.7 million on six multi-family
fixed rate notes, each with the Federal Home Loan Mortgage
Corporation loan program as lender as well as the payment of
related prepayment premiums. The $100 million borrowed under the
new term loan facility at closing was used to pay down a portion of
the outstanding balance under the revolving credit facility and to
pay related fees and expenses. The remaining $200 million available
under the term loan facility is available to be used for general
business purposes, including the repayment of approximately $95.7
million of 5.45% senior unsecured notes that mature in June 2012
and approximately $53.7 million of 5.50% secured mortgage notes
that become open for prepayment at par in October 2012.
Said Chris Papa, Executive Vice President and Chief Financial
Officer of the Company, “We were pleased that we were able to take
advantage of the current unsecured bank financing environment to
reduce the Company’s blended cost of capital and to pre-fund some
of our near-dated debt maturities. These steps are consistent with
our strategy to maintain a strong, liquid balance sheet and improve
our credit metrics over time.”
Forward-Looking Statements
Certain statements made in this press release may constitute
“forward-looking statements” within the meaning of the federal
securities laws. Statements regarding future events and
developments and the Company’s future performance, as well as
management’s expectations, beliefs, plans, estimates or projections
relating to the future, are forward-looking statements within the
meaning of these laws. Examples of such statements in this press
release include, expectations regarding the use of proceeds from
the term loan facility. All forward-looking statements are subject
to certain risks and uncertainties that could cause actual events
to differ materially from those projected. Management believes that
these forward-looking statements are reasonable; however, you
should not place undue reliance on such statements. These
statements are based on current expectations and speak only as of
the date of such statements. There are a number of important
factors that could cause the Company’s actual results and its
expectations to differ materially from those described in the
Company’s forward-looking statements, including those included
under the caption “Risk Factors” in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2010, and as may be
discussed in subsequent filings with the Securities and Exchange
Commission. The risk factors discussed in the Form 10-K under the
caption “Risk Factors” are specifically incorporated by reference
into this press release. The Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of future events, new information or otherwise.
About Post Properties
Post Properties, founded 40 years ago, is a leading developer
and operator of upscale multifamily communities. The Company’s
mission is delivering superior satisfaction and value to its
residents, associates, and investors, with a vision of being the
first choice in quality multifamily living. Operating as a real
estate investment trust (“REIT”), the Company focuses on developing
and managing Post® branded resort-style garden and high density
urban apartments. Post Properties is headquartered in Atlanta,
Georgia, and has operations in ten markets across the country.
Post Properties has interests in 21,658 apartment units in 58
communities, including 1,747 apartment units in five communities
held in unconsolidated entities and 1,568 apartment units in five
communities currently under development. The Company is also
selling luxury for-sale condominium homes in two communities
through a taxable REIT subsidiary.
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