Ramco-Gershenson (RPT) Closes $350M Amended Credit Facility
Zacks Investment Research | Sep 17, 2017 11:03PM ET
Ramco-Gershenson Properties Trust (NYSE:RPT) announced the closure of its $350-million amended and restated unsecured revolving loan facility. The extended credit facility will improve the company’s liquidity position.
The credit facility is slated to mature in September 2021 and can be extended by up to one year through two six-month options. The revised loan is priced at LIBOR plus 135 basis points (bps), in line with the company’s existing pricing grid. In addition, an accordion feature, which can potentially increase the total debt capacity to $650 million, is attached to the credit facility.
The aforementioned credit facility provides Ramco-Gershenson a cheaper line of credit and enables the company to stretch the maturities of its debts. This, in turn, will help improve its maturity profile.
The inflated credit facility also offers greater financial flexibility and will complement Ramco-Gershenson’s short- and long-term business plans. This will likely help the company execute its growth strategies, and drive the net asset value and dividend growth.
However, due to the gloomy environment in the retail real estate market, shares of Ramco-Gershenson have underperformed the Zacks Investment Research
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