Cedar amends revolver, increasing size, lowering rates

By Sara Rosenberg

New York, Dec. 19 - Cedar Shopping Centers Inc. amended its revolving credit facility, increasing the size to $200 million from $140 million and reducing the interest rate to a range of Libor plus 120 to 165 basis points from a range of Libor plus 150 to 205 bps, according to a company news release.

Furthermore, the unused fee was reduced to 15 bps from a previous range of 15 to 20 bps.

And, the accordion feature was increased to $300 million from $200 million.

In addition, the term loan of the facility was extended by one year to January 2008, with an additional one-year extension.

Lastly, the company will now be able to draw up to 70% of the value of the collateral, up from 65%, and other covenants have also been amended to provide additional flexibility.

Banc of America is the lead bank on the deal.

"Due to Cedar's proven track record working with our lenders, we have been able to expand and structure the arrangements in a manner which will greatly benefit the company," said Tom O'Keeffe, chief financial officer, in the release.

"The interest rate reductions and the amended terms generally provide the company with greater financial flexibility. The amended credit facility will help us take advantage of future development and redevelopment opportunities for continued growth."

Cedar is a Port Washington, N.Y.-based self-managed real estate investment trust focused on supermarket-anchored shopping centers and drug store-anchored convenience centers.

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