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The $365 million transaction refinances a portfolio of 31 of Donahue Schriber Realty Group’s assets including grocery-anchored and power centers across California, Arizona, Oregon and Nevada. The new financing, which is for five years with a built-in option for a two-year extension, is at a lower interest rate and eliminates many restrictive covenants, the Costa Mesa-based company said in an announcement regarding the refinancing.

With assistance from Chatham Financial, Donahue Schriber also locked in a LIBOR swap of $255 million as a hedge against potential rising interest rates. The transaction results in an annual interest savings in excess of $6 million. Craig Zarro of Preferred Capital Advisors in Sacramento served as adviser on behalf of Donahue Schriber.

In addition to commenting on the $365 million refinancing, CEO Donahue noted that the company’s major investors, the New York State Teachers’ Retirement System and the J.P. Morgan Chase Bank Strategic Property Fund, converted their $188 million of preferred stock and accrued dividends into shares of common stock. They have also committed to provide the company $100 million of additional common capital for future growth opportunities.

“We could not have done any of this without the confidence and support of our major shareholders, NYSTRS and J.P. Morgan Strategic Fund,” Donahue said.

Included in the $1.2 billion recapitalization total is the $248.5 million, 10-property refinance with Allstate Life Insurance Co. that closed May 31 and was reported on GlobeSt.com.

Donahue Schriber is a private REIT, and Donahue noted that Bank of America and its predecessor banks have been the leading financial partner since the formation of the company’s private REIT in 1997. The Costa Mesa-based company owns and/or operates a portfolio of 81 neighborhood, community, community lifestyle and power shopping centers representing over 12 million square feet throughout California, Nevada, Arizona and Oregon. Among the properties is Countryside Marketplace, a 724,000-square-foot center in Menifee, CA that is anchored by Super Target, Kohl's, Lowe's and Best Buy.