NEW YORK, March 18, 2014 /PRNewswire/ -- Brixmor Property Group Inc. (NYSE: BRX) announced today that it has closed on a new $600 million unsecured term loan facility. The term loan facility has a five-year term maturing on March 18, 2019 and will bear interest at a rate per annum equal to, at the Company's option, the base rate or LIBOR, plus an applicable margin based on the Company's total leverage ratio. The initial interest rate will be a rate per annum equal to LIBOR plus 1.45% based on the Company's total leverage ratio of 45.6%. The term loan facility has an accordion feature allowing the Company to borrow up to an additional $250 million, for a total commitment of up to $850 million. The Company has the ability to prepay the term loan under the facility without premium or penalty any time prior to maturity. Proceeds from the term loan facility will be used to pay-down outstanding balances under the Company's $1.25 billion revolving credit facility, which had been utilized to repay maturing indebtedness, a substantial portion of which was secured mortgages.
"This attractively priced term loan facility will enable us to continue our transition to an unsecured capital structure and extend the duration of our debt maturities, providing us with additional flexibility as we pursue an investment grade rating," said Michael Pappagallo, President and Chief Financial Officer of Brixmor Property Group. "We are also encouraged that 10 new banking relationships participated in the transaction, while also receiving strong support from the institutions who took part in our debut credit facility last year."
J.P. Morgan Securities LLC, PNC Capital Markets LLC and RBC Capital Markets served as joint book runners and joint lead arrangers, with JPMorgan Chase Bank, N.A. as administrative agent and PNC Bank, National Association and Royal Bank of Canada as syndication agents. Capital One, National Association, U.S. Bank National Association, Citibank, N.A., RBS Citizens Bank, N.A., Sumitomo Mitsui Banking Corporation, Suntrust Bank, TD Bank, N.A., The Bank of New York Mellon, Union Bank, N.A. and Wells Fargo Bank, National Association acted as documentation agents.
About Brixmor Property Group
Brixmor owns and operates the nation's largest wholly owned portfolio of grocery-anchored community and neighborhood shopping centers, with 522 properties aggregating approximately 87 million square feet of gross leasable area located primarily across the top 50 U.S. metro markets. Brixmor leverages its national footprint, local market knowledge and operational expertise to support the growth of its retail tenants. The Company is focused on maximizing the value of its portfolio through its extensive leasing capabilities and anchor space repositioning / redevelopment platform. Headquartered in New York City, the Company is the largest landlord to The TJX Companies and The Kroger Company. For additional information, please visit www.brixmor.com.
Safe Harbor Language
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to the Company's expectations regarding the performance of our business, our financial results, our liquidity and capital resources and other non-historical statements. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 12, 2014, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
SOURCE Brixmor Property Group Inc.
