NEW YORK, Oct. 11, 2017 /PRNewswire/ -- Bluerock
Residential Growth REIT, Inc. (NYSE MKT: BRG) (the "Company") today
announced that it has closed on a $150
million senior secured credit facility (the "Facility"). The
Facility provides an accordion feature that allows for increased
borrowing capacity of up to $250
million.
"We are pleased to implement our first credit facility, which
along with our proposed internalization, is a major step forward as
we enter into our next phase of growth," said Ramin Kamfar, the Company's Chairman and CEO.
"The Facility will provide us with added financial flexibility and
more efficient cash management, which we expect will have a
positive impact on our recurring AFFO. The Facility also
strengthens our existing relationship with KeyBank, and establishes
new important banking partnerships with Bank of America Merrill
Lynch and JPMorgan."
The Facility expires in October
2020 and has one 12-month extension option. Amounts drawn
under the Facility will bear interest at a variable rate initially
equal to (i) LIBOR plus a margin ranging from 1.80% to 2.45% per
annum or (ii) a base rate plus a margin ranging from 0.80% to 1.45%
per annum.
The Company plans to utilize the Facility to fund future
acquisitions, including two properties which are currently under
agreement and are expected to close in the fourth quarter of
2017.
KeyBanc Capital Markets, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, and JPMorgan Chase Bank, N.A. acted as co-lead
arrangers and book managers, with KeyBank National Association as
administrative agent. Merrill Lynch, Pierce, Fenner & Smith
Incorporated and JPMorgan Chase Bank, N.A. acted as co-syndication
agents.
About Bluerock Residential Growth REIT, Inc.
Bluerock
Residential Growth REIT, Inc. (NYSE MKT: BRG) is a real estate
investment trust that focuses on acquiring a diversified portfolio
of Class A institutional-quality apartment properties in
demographically attractive growth markets to appeal to the renter
by choice. The Company's objective is to generate value through
off-market/relationship-based transactions and, at the asset level,
through improvements to operations and properties. The Company
generally invests with strategic regional partners, including some
of the best-regarded, private owner-operators in the United States, making it possible to
operate as a local sharpshooter in each of its markets while
enhancing off-market sourcing capabilities. The Company is included
on the Russell 2000 and Russell 3000 Indexes. The Company has
elected to be taxed as a real estate investment trust (REIT) for
U.S. federal income tax purposes. For more information, please
visit our website at: www.bluerockresidential.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
and other federal securities laws. These forward-looking statements
are based upon the Company's present expectations, but these
statements are not guaranteed to occur. Furthermore, the Company
disclaims any obligation to publicly update or revise any
forward-looking statement to reflect changes in underlying
assumptions or factors, of new information, data or methods, future
events or other changes. Investors should not place undue reliance
upon forward-looking statements. For further discussion of the
factors that could affect outcomes, please refer to the risk
factors set forth in Item 1A of the Company's Annual Report on
Form 10-K filed by the Company with the U.S. Securities and
Exchange Commission ("SEC") on February 22, 2017, and subsequent filings by the
Company with the SEC. We claim the safe harbor protection
for forward looking statements contained in the Private Securities
Litigation Reform Act of 1995.
Contact
(Media)
Josh Hoffman
(208) 475.2380
jhoffman@bluerockre.com
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SOURCE Bluerock Residential Growth REIT, Inc.