Urstadt Biddle Properties Inc. Enters into a New $80 Million Unsecured Revolving Credit Agreement with a Syndication of Four ...
September 21 2012 - 4:29PM
Business Wire
Urstadt Biddle Properties Inc. (“UBP”) (NYSE: UBA and UBP)
announced that it has entered into a new $80 Million Unsecured
Revolving Credit Agreement with a syndication of four banks led by
The Bank of New York Mellon. The syndication also includes Wells
Fargo Bank N.A., Bank of Montreal and Regions Bank. The new
agreement will replace the existing $50 million unsecured revolving
credit agreement with BNY Mellon and Wells Fargo Bank N.A. The
facility gives UBP the option, under certain conditions, to
increase the borrowing capacity up to $125 million. The maturity
date of the facility is September 21, 2016 with a one year
extension at the Company’s option. Borrowings under the facility
can be used for, among other things, acquisitions, working capital,
capital expenditures, repayment of other indebtedness and the
issuance of letters of credit (up to $10 million). Borrowings will
bear interest at UBP’s option of LIBOR plus 1.5% to 2.0% based on
the Company’s consolidated level of indebtedness or The Bank of New
York Mellon’s prime lending rate plus 0.50% to 1.0%. UBP will pay
an annual fee on the unused commitment amount of up to 0.35% based
on outstanding borrowings during the year.
The facility contains certain financial and other covenants
typical for this type of facility. UBP’s ability to borrow under
the facility is subject to its compliance with the covenants and
other restrictions on an ongoing basis. The principal financial
covenants limit the Company’s level of secured and unsecured
indebtedness and additionally require the Company to maintain
certain debt coverage ratios.
In conjunction with the closing of its new $80 million unsecured
revolving credit agreement, the Company terminated its $30 million
secured credit agreement with BNY Mellon. The $30 million secured
line of credit was secured by two of the Company’s properties,
Danbury Square in Danbury, CT and Valley Ridge in Wayne, NJ. These
two assets will now be available to mortgage if the Company so
chooses.
Commenting on the financing transaction, Willing Biddle, UBP’s
President and Chief Operating Officer said, “We are pleased to
announce this new unsecured revolving credit facility that will
continue to provide UBP with the liquidity it needs to be efficient
in closing acquisition opportunities as they present themselves in
our marketplace. We are proud to continue our over twenty-five year
banking relationship with The Bank of New York Mellon and are
excited about our ongoing relationship with Wells Fargo, one of the
nation’s leading financial institutions with a particular expertise
in real estate. In addition, we are extremely pleased to begin what
we hope will be long relationships with the Bank of Montreal and
Regions Bank.”
Urstadt Biddle Properties Inc. is a self-administered equity
real estate investment trust which owns or has equity interests in
54 properties containing approximately 4.9 million square feet of
space. Listed on the New York Stock Exchange since 1970, it
provides investors with a means of participating in ownership of
income-producing properties. It has paid 171 consecutive quarters
of uninterrupted dividends to its shareholders since its inception
and raised its dividend to its shareholders for the last 18
consecutive years.
Certain statements contained herein may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among other
things, risks associated with the timing of and costs associated
with property improvements, financing commitments and general
competitive factors.
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