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Bank of America Agents $1B Credit Facility for Washington Prime Group

January 24, 2018, 07:22 AM
Filed Under: Real Estate

Washington Prime Group Inc. announced that its operating partnership, Washington Prime Group, L.P., has amended and restated its existing revolving credit and term loan facility that was set to mature with extension options on May 30, 2019. The newly recast $1 billion facility can be increased to $1.5 billion through currently uncommitted facility commitments. Excluding this accordion feature, the newly recast facility includes a $650 million revolver and $350 million term loan. When considering extension options, the facility will mature on December 30, 2022. The current pricing on the facility remains substantially consistent at LIBOR plus 1.25% on the revolver and LIBOR plus 1.45% on the term loan.

Borrowings of approximately $155 million from the recast facility were used to refinance the outstanding balance on the existing revolving credit facility. The $350 million term loan was fully funded at closing. The Company applied those proceeds to fully satisfy the existing June 2015 term loan with an outstanding balance of $270 million, with the remainder used to reduce the outstanding balance on the revolving credit facility.

On January 19, 2018, the Company used the proceeds from its then existing revolving credit facility to repay the $86.5 million mortgage loan secured by The Outlet Collection Seattle.

Lou Conforti, CEO and Director stated: “We continue to execute on our financial objective of the past 18 months to further strengthen our balance sheet. The recast facility enhances our strong financial flexibility and demonstrates the confidence of our bank partners in the stability of our cash flows. In conjunction with our recent issuance of $750M of unsecured notes due August 2024, the recast of our credit facility illustrates our focus to mitigate refinancing risk and optimize our capital structure. Mark Yale, Rob Demchak, Lisa Indest, and WPG’s financial and legal teams should be commended on the execution of both.”

Bank of America, N.A. served as administrative agent; Merrill Lynch, Pierce, Fenner & Smith Incorporated was joint lead arranger and sole bookrunner; PNC Capital Markets LLC, U.S. Bank National Association, Citizens Bank, N.A., The Huntington National Bank and Sumitomo Mitsui Banking Corporation served as joint lead arrangers; PNC Bank, National Association and U.S. Bank National Association were co-syndication agents; Citizens Bank, N.A., The Huntington National Bank and Sumitomo Mitsui  Banking Corporation were co-documentation agents; and Morgan Stanley Senior Funding Inc., SunTrust Bank, Regions Bank and Goldman Sachs Bank, USA served as senior managing agents.

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