Pricing, capacity and valuations remain unchanged, underscoring PREIT's improved portfolio and resulting credit quality
PHILADELPHIA, May 29, 2018 /PRNewswire/ -- PREIT (PEI) today announced a milestone achievement in its balance sheet strengthening effort - the execution of a modification and extension of its $400 million unsecured Revolving Credit Facility ("Revolver") and two of its $150 million 5-Year Term Loans ("Term Loan") with terms and conditions substantially the same as its existing loans, now maturing in 2023. The Company has completed over $1 billion in transactions in the financing market thus far in 2018, highlighting its ability to access the capital markets. One of the key tactics in PREIT's balance sheet strategy is maintaining a well-laddered maturity schedule, which is complemented by this transaction as the Company now boasts no material debt maturities until 2021.
Key Terms of the transactions are as follows:
- Term Loan
"We are extremely pleased to have completed these transactions at favorable terms ahead of their scheduled maturities. The quality of our portfolio and the Company's value proposition is clearly understood and appreciated by the credit markets," said PREIT CEO Joseph F. Coradino. "We believe that securing this level of capital and maintaining both cap rates and interest rate spreads are the manifestation of our Company's transformation and we are appreciative for the continued support of our bank group."
Wells Fargo Securities, LLC, U.S. Bank National Association, Citizens Bank, N.A., PNC Bank National Association, and MUFG Union Bank, N.A. were joint lead arrangers for these transactions.
PREIT (PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely-populated eastern U.S. with concentrations in the mid-Atlantic's top MSAs. Since 2012, the company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capital expenditures. Additional information is available at www.preit.com or on Twitter or LinkedIn.
Forward Looking Statements
This press release contains certain forward-looking statements that can be identified by the use of words such as "anticipate," "believe," "estimate," "expect," "project," "intend," "may" or similar expressions. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect our current views about future events, achievements or results and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. In particular, our business might be materially and adversely affected by changes in the retail and real estate industries, including consolidation and store closings, particularly among anchor tenants; current economic conditions and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions; our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; our ability to maintain and increase property occupancy, sales and rental rates; increases in operating costs that cannot be passed on to tenants; the effects of online shopping and other uses of technology on our retail tenants; risks related to our development and redevelopment activities, including delays, cost overruns and our inability to reach projected occupancy or rental rates; acts of violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales; our ability to sell properties that we seek to dispose of or our ability to obtain prices we seek; our substantial debt and the liquidation preference of our preferred shares and our high leverage ratio; our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; our ability to raise capital, including through sales of properties or interests in properties and through the issuance of equity or equity-related securities if market conditions are favorable; and potential dilution from any capital raising transactions or other equity issuances.
Additional factors that might cause future events, achievements or results to differ materially from those expressed or implied by our forward-looking statements include those discussed herein and in our Annual Report on Form 10-K for the year ended December 31, 2017 in the section entitled "Item 1A. Risk Factors." We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.
SVP, Strategy & Communications
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