OAK BROOK, Ill.--(BUSINESS WIRE)--Inland Real Estate Corporation (NYSE:IRC), a leading real estate investment trust that owns and operates high quality, necessity and value-based retail centers in select markets within the Central United States, today announced that it has closed amended and restated unsecured credit facilities totaling $475 million, representing an increase of $115 million in total capacity, with an expanded lending group that now includes eight banks. The amended and restated unsecured credit facilities (the “Facilities”) include a $275 million unsecured revolving credit facility (the “Revolver”) with a four-year term that has been extended to 2018 and a $200 million unsecured term loan (the “Term Loan”) with a five-year term now expiring in 2019. In addition, the Company has the option to extend the Revolver for 12 months, subject to its continued compliance with the terms of the Facility and payment of an extension fee of 0.15% of the commitment amount of the Revolver.
Borrowings under the Facilities bear interest at rates that vary based on the Company’s leverage ratios at the time of borrowing. Under the terms of the amended agreements, borrowings under the unsecured Revolver will bear interest at a rate of LIBOR plus 1.40% to 2.00%, and the unsecured Term Loan will bear interest at a rate of LIBOR plus 1.35% to 1.90%. In addition to providing for lower interest rates than the existing agreements, the amendments provide for improvements to certain financial covenants and reduce the capitalization rate used to determine asset value under the Facilities by 25 basis points to 7.00%.
“Our newly amended credit facilities provide expanded capacity, extended term, improved covenants and lower interest rates on borrowings, all of which enhance the financial flexibility of our Company,” said Brett Brown, executive vice president, chief financial officer and treasurer for Inland Real Estate Corporation. “We are pleased with the confidence shown in our Company by our expanded lending group as we continue to execute on our operational and financial objectives.”
KeyBanc Capital Markets, Wells Fargo Securities and Merrill Lynch, Pierce, Fenner & Smith served as co-lead arrangers and KeyBank, N.A. is the administrative agent for the Facilities. Wells Fargo Bank, N.A. and Bank of America, N.A. served as co-syndication agents and Bank of Montreal, Citizens Bank, N.A., and PNC Bank, N.A. served as co-documentation agents. Other key participants in the Facilities include Fifth Third Bank and Associated Bank, N.A.
About Inland Real Estate Corporation
Inland Real Estate Corporation is a self-advised and self-managed publicly traded real estate investment trust (REIT) focused on owning and operating open-air neighborhood, community and power shopping centers located in well-established markets primarily in the Central United States. As of March 31, 2014, the Company owned interests in 138 investment properties, including 29 owned through its unconsolidated joint ventures, with aggregate leasable space of approximately 15 million square feet. Additional information on Inland Real Estate Corporation is available at www.inlandrealestate.com. To connect with Inland Real Estate Corporation via LinkedIn, visit http://www.linkedin.com/company/inland-real-estate-corporation, or via Twitter at www.twitter.com/IRC_REIT.
Certain information in this supplemental information may constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not reflect historical facts and instead reflect our management's intentions, beliefs, expectations, plans or predictions of the future. Forward-looking statements can often be identified by words such as "seek," “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may,” “will,” “should” and “could.” Examples of forward-looking statements include, but are not limited to, statements that describe or contain information related to matters such as management's intent, belief or expectation with respect to our financial performance, investment strategy or our portfolio, our ability to address debt maturities, our cash flows, our growth prospects, the value of our assets, our joint venture commitments and the amount and timing of anticipated future cash distributions. Forward-looking statements reflect the intent, belief or expectations of our management based on their knowledge and understanding of our business and industry and their assumptions, beliefs and expectations with respect to the market for commercial real estate, the U.S. economy and other future conditions. Forward-looking statements are not guarantees of future performance, and investors should not place undue reliance on them. Actual results may differ materially from those expressed or forecasted in forward-looking statements due to a variety of risks, uncertainties and other factors, including but not limited to the risks listed and described under Item 1A”Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2014, as they may be revised or supplemented by us in subsequent Reports on Form 10-Q and other filings with the SEC. Except as otherwise required by applicable law, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement in this release to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.