Cedar Shopping Centers Closes Renewal of Credit Facility
November 10 2009 - 2:30PM
PR Newswire (US)
- $265 Million Facility - - Extension to January 2012, Plus
One-Year Option - PORT WASHINGTON, N.Y., Nov. 10
/PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. (NYSE:CDR)
today announced that it has closed on the renewal of a secured
revolving credit facility in the amount of $265 million. The
facility is for a two-year period ending January 31, 2012, with a
one-year extension at Cedar's option, subject to compliance and
loan covenants. The facility also has an accordion feature
permitting expansion to $400 million, subject to collateral and
lender commitments. The interest rate on the loan is LIBOR with a
floor of 200 basis points ("bps") plus 3.5%. The facility is
presently secured by 35 properties. As of today, the Company has
drawn approximately $194 million under the facility. The renewed
facility reflects a continuation of covenants under the existing
facility, with certain adjustments, including, without limitation,
availability measured by 67.5% of appraised values of stabilized
properties included in the collateral pool. Larry Kreider, the
Company's CFO, stated, "We are delighted with the extension of the
credit facility for our stabilized properties. We have previously
noted that we have no further debt maturities in 2009 and only
approximately $9 million of maturities in 2010. In 2011, other than
(i) the credit facility for our development properties, (ii) the
syndicated construction loan on our Upland joint venture
development (both subject to one-year extensions), and (iii)
mortgages on two properties which we expect to place in
previously-announced joint ventures with RioCan, we have only one
maturing loan, involving an amount of approximately $21 million.
"The availability under this newly-extended stabilized credit
facility, coupled with the availability under our credit facility
for development properties, provide to our Company the ability to
seek acquisitions of additional attractive properties, especially
in the context of our joint venture arrangements with RioCan, the
proceeds of which will further reduce the amounts drawn under our
credit facilities. This will also permit us to continue to execute
on our development pipeline." Joint lead arrangers for the credit
facility are Bank of America Securities, LLC, KeyBank National
Association, Manufacturers and Traders Trust Company and Regions
Capital Markets. Other members of the syndicated facility include
Raymond James Bank, FSB, Bank of Montreal, Citizens Bank of
Pennsylvania and Royal Bank of Canada. About Cedar Shopping Centers
Cedar Shopping Centers, Inc. is a fully-integrated real estate
investment trust which focuses primarily on ownership, operation,
development and redevelopment of "bread and butter"
supermarket-anchored shopping centers in coastal mid-Atlantic and
New England states. The Company presently owns and operates
approximately 13.1 million square feet of GLA at 124 shopping
center properties, of which more than 75% are anchored by
supermarkets and/or drugstores with average remaining lease terms
of approximately 11 years. The Company's stabilized properties have
an occupancy rate of approximately 95%. The Company has also
announced a pipeline of seven additional substantially pre-leased
primarily supermarket- and drugstore-anchored development
properties. For additional financial and descriptive information on
the Company, its operations and its portfolio, please refer to the
Company's website at http://www.cedarshoppingcenters.com/.
Forward-Looking Statements Statements made or incorporated by
reference in this press release include certain "forward-looking
statements". Forward-looking statements include, without
limitation, statements containing the words "anticipates",
"believes", "expects", "intends", "future", and words of similar
import which express the Company's beliefs, expectations or
intentions regarding future performance or future events or trends.
While forward-looking statements reflect good faith beliefs,
expectations, or intentions, they are not guarantees of future
performance and involve known and unknown risks, uncertainties and
other factors, which may cause actual results, performance or
achievements to differ materially from anticipated future results,
performance or achievements expressed or implied by such
forward-looking statements as a result of factors outside of the
Company's control. Certain factors that might cause such
differences include, but are not limited to, the following: real
estate investment considerations, such as the effect of economic
and other conditions in general and in the Company's market areas
in particular; the financial viability of the Company's tenants
(including an inability to pay rent, filing for bankruptcy
protection, closing stores and vacating the premises); the
continuing availability of acquisition, development and
redevelopment opportunities, on favorable terms; the availability
of equity and debt capital (including the availability of
construction financing) in the public and private markets; the
availability of suitable joint venture partners and potential
purchasers of the Company's properties if offered for sale; changes
in interest rates; the fact that returns from acquisition,
development and redevelopment activities may not be at expected
levels or at expected times; risks inherent in ongoing development
and redevelopment projects including, but not limited to, cost
overruns resulting from weather delays, changes in the nature and
scope of development and redevelopment efforts, changes in
governmental regulations relating thereto, and market factors
involved in the pricing of material and labor; the need to renew
leases or re-let space upon the expiration or termination of
current leases and incur applicable required replacement costs; and
the financial flexibility to repay or refinance debt obligations
when due and to fund tenant improvements and capital expenditures.
DATASOURCE: Cedar Shopping Centers, Inc. CONTACT: Leo S. Ullman,
Chairman, CEO and President, Cedar Shopping Centers, Inc.,
+1-516-944-4525, Web Site: http://www.cedarshoppingcenters.com/
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