Whitestone REIT gets $515 million credit facility in three tranches

By Wendy Van Sickle

Columbus, Ohio, Feb. 6 – Whitestone REIT closed on a new $515 million unsecured credit facility, an increase of $15 million from its previous credit facility, according to a news release.

The credit facility comprises a $250 million revolving credit facility due Jan. 1, 2023; a $165 million term loan A due Jan. 31, 2024; and a $100 million term loan B due Oct. 30, 2022.

Borrowings bear interest at Libor plus a margin that ranges from 140 basis points to 190 bps for the revolver and 135 bps to 190 bps for the term loans. The margin depends on the company’s leverage.

An accordion feature allows Whitestone to increase total capacity by up to $200 million.

Proceeds of the new credit facility were used to repay the existing revolver and associated fees, and future draws will be used to fund growth and acquisitions, redevelopment of value-add properties in its portfolio and for general corporate purposes.

“We are pleased to complete yet another milestone transaction that highlights Whitestone’s strong financial position and increases our funding flexibility while reducing costs,” chairman and chief executive officer Jim Mastandrea said in the release.

“This credit facility provides Whitestone with long-term committed funding to support future growth of our successful, e-commerce resistant business model.”

Houston-based Whitestone is a real estate investment trust that owns, manages, operates, leases and repositions and redevelops community-centered properties.

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