Retail Properties of America, Inc. RPAI has secured an amended and restated unsecured credit facility worth $1.2 billion. This development not only expands the Oak Brook, IL-based retail real estate investment trust’s total capacity by $200 million, but also indicates its ability to raise funds from the unsecured debt market. Subject to fulfillment of certain conditions, this funding is likely to close in Jan 2016.
Retail Properties of America’s existing unsecured credit facility has been amended to form a $750-million unsecured revolver and a $200-million unsecured term loan. A new $250-million unsecured term loan has also been secured.
The modified $750-million unsecured revolver has raised the capacity of the existing unsecured revolver by $200 million as well as extended the maturity date by 4 years. The rate of interest on the amended revolver has been set at London inter-bank offered rate (“LIBOR”) plus 135 basis points (“bps”), down 15 bps from that of the existing revolver facility.
Under the revised $200-million unsecured term loan facility, the actual loan amount has been reduced by $250 million. Under the latest $250-million unsecured term loan facility, the rate of interest has been set at LIBOR plus 130 bps, with a maturity date of 5 years.
Retail Properties of America is engaged in owning and operating shopping centers in the U.S.
Currently, the REIT has a Zacks Rank #2 (Buy).
Investors interested in the retail REIT space may also consider stocks like EPR Properties EPR, National Retail Properties, Inc. NNN and Regency Centers Corp. REG. All three stocks carry the same Zacks Rank as Retail Properties of America.
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