Monmouth enters new four-year $130 million revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, Aug. 27 – Monmouth Real Estate Investment Corp. entered into a new four-year unsecured revolving credit facility with availability up to $130 million, according to a Thursday press release.

BMO Capital Markets acted as lead arranger and bookrunner, Bank of Montreal as administrative agent and JPMorgan Chase Bank, NA and RBC Capital Markets as co-syndication agents.

The revolver has a $70 million accordion feature and matures in August 2019 with a one-year extension option.

Availability under the facility is based on 70% of the value of the borrowing base properties through Dec. 31, 2016 and 60% of the properties’ value thereafter.

Borrowings up to the first 60% of the value of the base properties will bear interest at Libor plus 140 basis points to 220 bps, depending on the company’s leverage ratio. Borrowings in excess of that will bear interest at Libor plus 215 bps to 295 bps. Initially, borrowings up to 60% of the properties’ value will bear interest at Libor plus 170 bps, and the rate for borrowings in excess of that is Libor plus 245 bps.

The facility replaces the company’s previous $60 million facility, which was limited to 60% of the value of the borrowing base properties and bore interest at Libor plus 175 bps to 250 bps with current interest at Libor plus 200 bps. That facility was set to mature in June 2016.

Monmouth is a real estate investment trust based in Freehold, N.J., with a concentration on net-leased industrial policies.

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