PREIT Executes on Key Step in Capital Plan Securing Liquidity to Fund Redevelopment Pipeline
$250 million Term Loan completed by Fashion District Philadelphia Joint Venture
Over $700 million raised since the beginning of 2017
Jan 29, 2018, 07:30 ET
PHILADELPHIA, Jan. 29, 2018 /PRNewswire/ -- PREIT (NYSE: PEI) today announced that it has executed on key components of its capital plan, having raised sufficient liquidity to fully fund its announced redevelopment pipeline. At the same time, the Company has improved its maturity schedule, having satisfied all mortgage obligations at wholly-owned properties until July 2020.
$250 million Term Loan secured by Fashion District Philadelphia
We closed on a new $250.0 million Term Loan secured by a pledge of equity in certain entities that own Fashion District Philadelphia, of which the Company is a 50% partner. The joint venture entity borrowed $150.0 million at closing, with the remaining $100.0 million available via a delayed draw option. The interest-only loan matures in January 2023 and bears interest at a rate of 200 bps over LIBOR and is severally guaranteed by each partner's respective operating partnership.
Francis Scott Key Loan Extension
The Company has also completed an amendment and extension of the mortgage loan on Francis Scott Key Mall. The $68.5 million loan bears interest at LIBOR + 260 bps, mirroring existing terms. The loan has an initial maturity date of January 2022 and includes a one-year extension option to January 2023.
Since detailing its capital plan in January 2017, the Company has raised gross proceeds of over $700.0 million, resulting in net proceeds of over $460.0 million.
"Executing on our capital plan to improve our liquidity and strengthening our balance sheet is a top priority for the Company," said Joseph F. Coradino, CEO of PREIT. "Being flexible and nimble are keys to success in retail real estate and we are pleased to have raised sufficient liquidity to fully fund our value-creating redevelopment projects well in advance of the spending needs."
About PREIT
PREIT (NYSE: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.
CONTACT:
Heather Crowell
SVP, Strategy & Communications
(215) 454-1241
[email protected]
SOURCE PREIT