Wheeler Real Estate Investment Trust, Inc. Lowers Debt With Partial Repayment of Credit Facility
August 12 2016 - 8:30AM
Wheeler Real Estate Investment Trust, Inc.
(NASDAQ:WHLR) (“Wheeler” or the “Company”), a company specializing
in owning, acquiring, financing, developing, renovating, leasing
and managing income producing assets, such as community centers,
neighborhood centers, strip centers and free-standing retail
properties, today announced that it has reduced the balance
remaining on the Company’s revolving credit line with KeyBank
National Association (“KeyBank”) to approximately $46.1 million
from $67.2 million at June 30, 2016.
In April 2016, the Company utilized the credit
facility with KeyBank to finance 85% of the value of the AC
portfolio, fourteen grocery anchored shopping centers located in
South Carolina and Georgia, acquired by the Company at an 8.85% cap
rate. Pursuant to the agreement with KeyBank, the Company had until
March 2017 to lower the balance of the credit facility to $46.1
million, or 65% LTV, at which point the interest rate would reduce
on the remaining balance by 250 bps to 30-day LIBOR + 250
bps.
On July 21, 2016, the Company entered into an
equity distribution agreement with JonesTrading Institutional
Services LLC to launch an at-the-market offering (“ATM”) of the
Company’s Series B Preferred Stock. The Company refinanced
its Chesapeake Square property and utilized the ATM to raise
sufficient funds to pay down the Key Bank line, thereby reducing
debt to gross asset value – KeyBank’s governing leverage metric –
to 64% from 68% at June 30, 2016.
Jon S. Wheeler, Chairman and Chief Executive
Officer of Wheeler, stated, “We utilized proceeds from the ATM in
order to take advantage of lower interest rates and lower the
overall leverage profile of the Company. We had a year to reduce
the credit facility to $46.1 million, and we managed to accomplish
this in only four months on an earnings accretive basis.
Deleveraging capital is important to the Company and remains in the
forefront as we continue to strive towards a healthy, sustainable
debt profile.”
About Wheeler Real Estate Investment
Trust Inc.Headquartered in Virginia Beach, VA, Wheeler
Real Estate Investment Trust, Inc. is a fully-integrated,
self-managed commercial real estate investment company focused on
acquiring and managing income-producing retail properties with a
primary focus on grocery-anchored centers. Wheeler’s portfolio
contains well-located, potentially dominant retail properties in
secondary and tertiary markets that generate attractive
risk-adjusted returns, with a particular emphasis on
grocery-anchored retail centers. Additional information about
Wheeler Real Estate Investment Trust, Inc. can be found at the
Company’s corporate website: www.whlr.us.
Forward-looking StatementThis
press release may contain “forward-looking” statements as defined
in the Private Securities Litigation Reform Act of 1995. When the
Company uses words such as “may,” “will,” “intend,” “should,”
“believe,” “expect,” “anticipate,” “project,” “estimate” or similar
expressions that do not relate solely to historical matters, it is
making forward-looking statements. Forward-looking statements
are not guarantees of future performance and involve risks and
uncertainties that may cause the actual results to differ
materially from the Company’s expectations discussed in the
forward-looking statements. The Company’s expected results
may not be achieved, and actual results may differ materially from
expectations. Specifically, the Company’s statements regarding the
Company’s ability to delever and maintain appropriate debt levels
are forward-looking statements. These statements are not
guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond our
control, are difficult to predict and could cause actual results to
differ materially from those expressed or forecasted in the
forward-looking statements. For these reasons, among others,
investors are cautioned not to place undue reliance upon any
forward-looking statements in this press release. Additional
factors are discussed in the Company's filings with the U.S.
Securities and Exchange Commission, which are available for review
at www.sec.gov. The Company undertakes no obligation to publicly
revise these forward‐looking statements to reflect events or
circumstances that arise after the date hereof.
Contact
AT THE COMPANY:
Wheeler Real Estate Investment Trust, Inc.
Robin Hanisch
Corporate Secretary
(757) 627-9088
robin@whlr.us
Laura Nguyen
Director of Capital Markets
(757) 627-9088
lnguyen@whlr.us
-OR-
INVESTOR RELATIONS:
The Equity Group Inc.
Terry Downs
Associate
(212) 836-9615
tdowns@equityny.com
Adam Prior
Senior Vice-President
(212) 836-9606
aprior@equityny.com
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