ShopOne Closes New $325M Senior Credit Facility
New York (Business Wire)—ShopOne Centers REIT Inc., (“ShopOne”) a private real estate investment trust (“REIT”) focused on acquiring, operating and managing market-dominant, grocery-anchored shopping centers, announced today the closing of a $325M senior credit facility. A portion of the new facility was used to terminate existing mortgage debt on 16 properties which will enable the company to maximize value through repositioning of the real estate and tenant merchandising mix.
The credit facility, led by KeyBanc Capital Markets, with joint lead arrangers Huntington Bank, Regions Financial Corporation and BBVA Compass, is a four-year loan with a one-year extension option. The credit facility will be used to refinance higher interest rate maturing mortgage debt, provide working capital, with additional capacity to fund new accretive acquisitions. The new facility includes a $150 million revolving component that improves capital management flexibility. Equally important, the company’s debt maturity profile has been improved with the next debt maturity not occurring until late 2021.
“We are pleased to have worked with our financial partners, led by KeyBanc Capital Markets, on this transaction and to have their institutional acknowledgement of the final step in recapitalizing the ShopOne platform positioning us to proceed with additional strategic investments that align with our long-term portfolio goals,” said John Roche, Chief Financial Officer, ShopOne. “The combination of capital availability and decades of experience in maximizing value through redevelopment, leasing and property management will enable ShopOne to achieve above market returns in the current environment.”
ShopOne Centers REIT Inc. is a private real estate investment trust that is focused on acquiring, operating and managing market-dominant, grocery-anchored shopping centers in densely populated, fundamentally strong markets across the country. ShopOne and its affiliates own and/or manage 47 shopping centers in nine states with approx. 5 million square feet of gross leasable area. Many of the nation’s leading necessity-based retailers including Kroger, Target, and TJX call ShopOne’s properties home.
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Experienced real estate executive’s career spans more than 25 years, predominantly with leading publicly traded REITs