EPR Properties cuts pricing via amended $1 billion revolver, term loan

By Susanna Moon

Chicago, April 27 – EPR Properties obtained an amended and restated credit agreement that provides for a $650 million four-year senior revolving credit facility and a $350 million five-year senior term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The company amended its credit agreement on Friday with KeyBanc Capital Markets, LLC, J.P. Morgan Securities, Inc. and RBC Capital Markets as joint bookrunners and joint lead arrangers. KeyBank NA is the administrative agent.

JPMorgan Chase Bank, NA and RBC Capital Markets are the co-syndication agents; Citibank, NA, Bank of America, NA and Barclays Bank plc are the co-documentation agents.

The amendments raised the initial borrowing amounts under the facilities, extended the maturity date of the facilities and lowered pricing, the filing noted.

The amended agreement allows for an extension of credit up to $1 billion, composed of an initial maximum principal amount of $650 million available under the new revolving credit facility, which includes a $100 million sub-line for letters of credit, and an initial maximum principal amount under the term loan of $350 million.

The agreement contains an accordion that allows increasing the total size by $1 billion to a total of $2 billion. If the borrowers exercise all or some of the $1 billion accordion, with lender consents, the resulting increase in the revolver or term loan may have a shorter or longer maturity date and different pricing terms.

Interest on the revolving loans is initially Libor plus 125 basis points, down from Libor plus 140 bps under the previous revolver. The spread ranges from Libor plus 87.5 bps to 165 bps based on the company’s credit ratings.

The facility fee is 25 bps, reduced from 30 bps.

Interest on the term loan is Libor plus 140 bps, cut from Libor plus 160 bps.

Proceeds of about $285 million under the term loan were used to repay debt under the previous term loan.

The revolver matures on April 24, 2019, subject to a one-year extension. The term loan matures on April 24, 2020.

The agreement replaces the company’s senior revolving credit facility dated July 23, 2013 with KeyBank as administrative agent.

The borrowers may elect to obtain advances of all or a portion of the remaining about $65 million available under the term loan. The advances may be requested on no more than three occasions and must occur by July 24.

Interest on the outstanding principal balance of the term loan is payable monthly. Principal does not amortize and is prepayable without premium or penalty, in whole or in part, at any time with a final due date of April 24, 2020.

The real estate investment trust for entertainment properties is based in Kansas City, Mo.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.