MINOT, N.D., Sept. 6, 2018 /PRNewswire/ -- IRET
(NYSE: IRET) recently amended its primary unsecured credit
facility to increase the overall commitment, improve pricing,
extend the term of the revolver and existing term loan and add a
new 7-year term loan.
In connection with the amendment, IRET:
- increased the overall unsecured facility from $370 million to $395
million, reallocating the commitment for the revolving line
of credit to $250 million and the
remaining $145 million between two
term loans;
- extended the maturity of the revolving line of credit to
August 2022;
- extended the existing $70 million
unsecured term loan maturity to January
2024;
- added a new $75 million, 7-year
unsecured term loan maturing in August
2025 that bears interest at a spread of 175 basis points
over LIBOR based on IRET's overall leverage; and
- maintains a $200 million
accordion option that can be accessed by increasing lending
commitments.
Under the amendment, the interest rate on the existing
facilities decreases by 25-35 basis points depending on IRET's
overall leverage. IRET also entered into a swap agreement for the
entire $75 million and full term of
the new unsecured 7-year term loan in its ongoing effort to reduce
floating interest rate exposure.
"This is a great outcome for IRET," said Mark O. Decker, Jr., President and CEO. "We
believe these enhancements reflect a recognition of the improving
quality of our business. This amendment improves our liquidity and
debt maturity schedule and provides a foundation for the continued
growth of our business. We are grateful for the continued support
from our bank group."
About IRET
IRET is a real estate company focused on
the ownership, management, acquisition, redevelopment, and
development of apartment communities. As of July 31, 2018, IRET owns interests in
87 communities consisting of 13,703 apartment
homes. IRET's common shares and Series C preferred
shares are publicly traded on the New York Stock Exchange (NYSE
symbols: IRET and IRET PRC, respectively). IRET's press
releases and supplemental information are available on its website
at www.iretapartments.com or by calling Investor Relations at
701-837-7104.
Contact Information
Jonathan
Bishop
Vice President – Finance
Phone: 701-837-7104
E-mail: IR@iret.com
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SOURCE IRET