Jernigan Capital, Inc. Closes New Credit Facility
July 25 2017 - 4:15PM
Business Wire
- $100 Million Committed Amount, Expandable
Up to $200 Million -
- Provides Additional Lower-Cost Capital to
Fund Robust Investment Pipeline -
Jernigan Capital, Inc. (NYSE:JCAP) (the “Company”) announced
today that it has entered into a credit agreement for a secured
revolving credit facility with a syndicate of banks led by KeyBank
National Association and Raymond James Bank, N.A. The $100 million
credit facility, which has an accordion feature permitting
expansion up to $200 million, subject to certain conditions
including obtaining additional commitments from lenders, will
provide lower cost debt financing for the Company’s pipeline of
self-storage development investments.
The credit agreement has a three-year term that expires July 24,
2020. Borrowings under the credit facility are secured by two
separate pools of collateral: one consisting of the Company’s
mortgage loans extended to developers of self-storage properties
and the other consisting of self-storage properties owned by the
Company. Advances under the credit agreement bear interest at rates
between 275 and 375 basis points over 30-day LIBOR. At such time as
the Company has borrowings equaling or exceeding $50.0 million, the
Company is required by the credit agreement to hedge at least 75%
of its floating rate borrowings. The Company intends to enter into
a swap or cap agreement to fix its LIBOR-based borrowings under the
credit facility when borrowings under the credit facility reach $50
million.
“With the procurement of up to $100.0 million of new committed
capital we are positioned to fund our robust pipeline of
well-located state-of-the-art self-storage development
investments,” commented John Good, President and Chief Operating
Officer of the Company. “This credit facility is expected to
provide the ability to better match fund our development pipeline
at a lower-cost, allowing us to efficiently manage our capital in a
manner that we believe continues to enhance shareholder value.”
As of the time of closing, the Company has borrowing capacity of
approximately $33.3 million under the credit facility, of which
$20.0 million was drawn at closing. In connection with closing the
credit facility, the Company repurchased the senior participations
on five self-storage development loans it had sold in mid-2016, and
plans to utilize proceeds from its recently completed follow-on
public offering to pay down the credit facility to eliminate
approximately $200,000 per quarter of interest expense on those
senior participations.
KeyBanc Capital Markets, Inc. and Raymond James Bank, N.A. acted
as joint lead arrangers for the credit facility. KeyBank N.A. acted
as the Administrative Agent for the credit facility and Raymond
James Bank, N.A. acted as syndication agent. Other banks
participating in the credit facility are Trustmark National Bank,
FirstBank, Triumph Bank and Renasant Bank.
About Jernigan Capital, Inc.
Jernigan Capital, Inc. is a New York Stock Exchange-listed real
estate investment trust (NYSE: JCAP) that provides debt and equity
capital to private developers, owners, and operators of
self-storage facilities. Our mission is to be the preeminent
capital partner for self-storage entrepreneurs nationwide by
offering creative solutions through an experienced team
demonstrating the highest levels of integrity, dedication,
excellence and community, while maximizing shareholder value. The
Jernigan Capital team has extensive experience in over 100 U.S.
markets—from acquiring and managing self-storage properties to new
self-storage development—providing JCAP with knowledge unmatched by
any lender, broker or advisor to the sector. Jernigan Capital is
the only source of construction and development capital focused
solely on the self-storage sector.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995
and other federal securities laws, including statements regarding,
including statements regarding total availability under the credit
facility and the availability of the accordion feature of the
facility, our future performance, our second quarter 2017 earnings
guidance and full year 2017 updated earnings guidance, including
related key assumptions, future profits from investments, our
anticipated loan closings, our access to capital and our ability to
fund our existing loan commitments. The ultimate occurrence of
events and results referenced in these forward-looking statements
is subject to known and unknown risks and uncertainties, many of
which are beyond our control. These forward-looking statements are
based upon the Company's present intentions and expectations, but
the events and results referenced in these statements are not
guaranteed to occur. Investors should not place undue reliance upon
forward-looking statements. For a discussion of these and other
risks facing our business, see the information under the heading
“Risk Factors” in our Annual Report on Form 10-K filed with the
Securities and Exchange Commission (“SEC”) and our other filings
with the SEC from time to time, which are accessible on the SEC’s
website at www.sec.gov.
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version on businesswire.com: http://www.businesswire.com/news/home/20170725006372/en/
Jernigan Capital, Inc.Investor Relations:
901-567-9580Investorrelations@jernigancapital.com
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