HOUSTON, Sept. 19, 2022 (GLOBE NEWSWIRE) — Whitestone REIT (NYSE: WSR) announced that through its operating partnership, Whitestone REIT Operating Partnership, L.P., it has amended and extended its $515 million credit facility, comprised of a $250 million revolver and $265 million term loan. The facility, which can be increased to $715 million through an accordion feature is scheduled to mature, for the $250 million revolver, on September 16, 2026, with two additional six-month options to extend the maturity date to September 16, 2027, and for the $265 million term loan on January 31, 2028. Borrowings under the facility accrue interest (at the Operating Partnership’s option) at a Base Rate or an Adjusted Term SOFR plus an applicable interest rate margin based upon the Company’s then existing leverage. The revolver has an initial interest rate of SOFR plus 1.60%(1) and a 10 basis point credit spread adjustment. In addition, the Company entered into interest rate swaps to fix the interest rates on the $265 million term loan. The term loan has the following rates:
- 2.16% plus 1.55%(1) through October 28, 2022
- 2.80% plus 1.55%(1) from October 29, 2022 through January 31, 2024
- 3.42% plus 1.55%(1) from February 1, 2024 through January 31, 2028
The recast facility also features an Environmental, Social and Governance (“ESG”) pricing provision whereby the applicable interest rate margin can be adjusted based on the Company’s performance on certain sustainability performance targets.
“The renewed credit facilities’ attractive terms reflect our strengthening balance sheet and provides us additional liquidity and financial flexibility,” said Dave Holeman, Whitestone’s CEO. “We appreciate the support of our bank group, and we are encouraged by the new banking relationships that participated in the transaction.”
The co-lead arrangers and joint-book runners for the facility were BMO Capital Markets Corp., Truist Bank, Capital One, National Association, and U.S. Bank National Association. BMO Capital Markets Corp. will continue to be the administrative agent for the credit facility and Truist Bank will continue to be the syndication agent. Capital One, National Association and U.S. Bank National Association will serve as documentation agents and BMO Capital Markets Corp. will serve as the sustainability structuring agent. Deutsche Bank AG, Associated Bank, National Association and S&T Bank are also participants in the credit facility.
(1) Based on the Company’s current leverage ratio as defined in the facility. Please see today’s 8–K for more detail.
About Whitestone REIT
Whitestone REIT (NYSE: WSR) is a community-centered real estate investment trust (REIT) that acquires, owns, operates, and develops open-air, retail centers located in some of the fastest growing markets in the country: Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio.
Our centers are convenience focused: merchandised with a mix of service-oriented tenants providing food (restaurants and grocers), self-care (health and fitness), services (financial and logistics), education and entertainment to the surrounding communities. The company believes its strong community connections and deep tenant relationships are key to the success of its current centers and its acquisition strategy. For additional information, please visit www.whitestonereit.com.
