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FARMINGTON HILLS, MI-Shopping center REIT Ramco-Gershenson Properties Trust has increased its available credit for future acquisitions by at least $35 million. The new credit arrangement comes just days after Ramco announced it was forming a $450-million joint venture with Clarion Lion, a real estate investment arm of New York-based ING, to acquire additional properties.
Under the terms of the new credit agreement with Fleet National Bank, Ramco increases its secured revolving credit facility from $125 million to $160 million with a built-in accordion feature allowing up to a $40-million increase for a total of $200 million in available credit. "The increase to our secured revolving line of credit as well as the positive pricing change in both credit facilities provide us with even greater financial flexibility to execute our business plan," says Dennis Gershenson, president and chief executive officer.
Pricing on the amended secured revolver is LIBOR plus 1.15% to 1.55%, compared to the previous rate of LIBOR plus 1.50% to 2.00%. The amended facility expires on Dec. 29, 2005. Ramco also has the option to extend the arrangement for an additional year.
In addition to Fleet National Bank, the lenders under the secured facility are Deutsche Bank Trust Company Americas, JP Morgan Chase Bank, Standard Federal Bank, Huntington National Bank, US Bank, PNC Bank and KeyBank.
Ramco also amended its $40-million unsecured revolving credit facility. The facility bears interest at LIBOR plus 1.85% to 2.25% compared to the previous rates of LIBOR plus 3.25% to 3.75%, in each case depending on the company's total leverage. The lenders under the unsecured credit facility are Fleet National Bank and KeyBank.
Including a series of nine shopping center purchased announced in late November and early December 2004, which are now under the joint venture with Clarion Lion, Ramco, has a portfolio of 74 shopping centers totaling approximately 15.2 million sf.
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