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Citibank, Others Provide $350MM Credit Facility Independence Realty Trust

May 13, 2019, 08:55 AM
Filed Under: Real Estate
Related: Citibank N.A

Independence Realty Trust, Inc. (IRT) announced that its operating partnership, Independence Realty Operating Partnership, LP, closed on a new $350 million unsecured revolving credit facility refinancing the previous unsecured credit facility. The new credit facility: increases the size of the revolving credit facility by $50 million; extends maturities by two years to May 2023; and lowers borrowing costs. Borrowing under the new credit facility will bear interest at LIBOR plus 1.25% to 2.00%, based on IRT’s leverage ratio, which represents a five basis point reduction in the spread.

The credit facility also includes an accordion feature that allows for an additional $250 million of capacity, resulting in a maximum borrowing capacity of $600 million. Any such increase must be in increments of at least $25 million, may be designated as a single incremental term loan, and is subject to customary conditions, including obtaining commitments from any one or more lenders to provide such increased amounts.

Citibank, N.A. and KeyBanc Capital Markets are Joint Bookrunners, and Citibank, N.A., KeyBanc Capital Markets, and Huntington National Bank are Joint Lead Arrangers with respect to the new credit agreement. The existing lender group and new institutional banks participated in the new credit facility.

“This agreement increases our capacity, lowers our interest rates, extends maturities, and most importantly offers flexibility for future growth initiatives,” said Scott Schaeffer, IRT’s Chairman and Chief Executive Officer. “Furthermore, the new facility demonstrates our commitment to prudent balance sheet management, and we’d like to thank our lending partners for their continued support."

Initial borrowings under the new credit facility were used to pay closing costs and repay the outstanding balance of the prior credit agreement, leaving approximately $218.1 million of undrawn capacity.

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