CTO Realty Growth Announces $565 Million Credit Facility
September 21 2022 - 4:15PM
CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) today
announced that it has successfully amended its senior unsecured
revolving Credit Facility. The amended Credit Facility was
increased to $565 million and is comprised of a $300 million
unsecured revolving credit facility (the “Revolver”), a new $100
million unsecured term loan (the “2028 Term Loan”), and the
Company’s existing $165 million of unsecured term loans
(altogether, the “Credit Facility”). The Credit Facility includes
accordion options that allow the Company to request additional
Revolver lender commitments up to a total of $750 million and
additional term loan lender commitments up to a total of $500
million.
“We’re very pleased with the improved terms and
expanded borrowing capacity of our Credit Facility, and we
appreciate the strong support shown by our expanded bank group,”
said Matthew Partridge, Chief Financial Officer of CTO Realty
Growth. “With the closing of the Credit Facility, we have no debt
maturing until 2025 and we have ample liquidity to execute our
investment strategy as we continue to grow our high-quality,
retail-focused portfolio.”
The amended Credit Facility includes a
sustainability-linked pricing component that reduces the applicable
interest rate margin if the Company meets certain sustainability
performance targets. The Credit Facility also transitions the
company from LIBOR to SOFR borrowings and made structural changes
to certain financial covenants.
The amended and restated Revolver was upsized
from the Company’s existing $210 million senior unsecured revolving
credit facility, which was set to mature in May of 2023. The
Revolver will mature in January 2027, with extension options
available to extend the maturity for an additional year to January
of 2028. Based on the Company’s current leverage ratio, the initial
interest rate for the Revolver will be SOFR plus 135 basis points
and a 10-basis point SOFR index adjustment.
The 2028 Term Loan was fully drawn at close, and
proceeds were used to repay outstanding balances on the Company’s
Revolver. The 2028 Term Loan has an initial interest rate of SOFR
plus 130 basis points and a 10-basis point SOFR index adjustment.
Subject to market conditions, the Company intends to fix it’s 2028
Term Loan SOFR exposure utilizing interest rate swaps.
Bank of Montreal, KeyBanc Capital Markets Inc.,
Truist Securities, Inc. and Wells Fargo Securities, LLC acted as
Joint Bookrunners and Joint Lead Arrangers for the Revolver. Bank
of Montreal will act as Administrative Agent and KeyBank, National
Association, Truist Bank and Wells Fargo Bank, National Association
will act as Co-Syndication Agents for the Revolver. The Huntington
National Bank, PNC Bank, National Association, Raymond James Bank,
Regions Bank and Synovus Bank also participated in the
Revolver.
Bank of Montreal, Truist Securities, Inc. and
PNC Capital Markets LLC acted as Joint Bookrunners and Joint Lead
Arrangers for the 2028 Term Loan. Bank of Montreal will act as
Administrative Agent and Truist Bank and PNC Bank, National
Association will act as Co-Syndication Agents for the 2028 Term
Loan. The Huntington National Bank, KeyBank, National Association
and Raymond James Bank also participated in the 2028 Term Loan.
BMO Capital Markets Corp. will act as advisor
and sole Sustainability Structuring Agent.
About CTO Realty Growth,
Inc.
CTO Realty Growth, Inc. is a publicly traded
real estate investment trust that owns and operates a portfolio of
high-quality, retail-based properties located primarily in higher
growth markets in the United States. CTO also externally manages
and owns a meaningful interest in Alpine Income Property Trust,
Inc. (NYSE: PINE), a publicly traded net lease REIT.
We encourage you to review our most recent
investor presentation and supplemental financial information, which
is available on our website at www.ctoreit.com.
Safe Harbor
Certain statements contained in this press
release (other than statements of historical fact) are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements can typically be identified by words such as “believe,”
“estimate,” “expect,” “intend,” “anticipate,” “will,” “could,”
“may,” “should,” “plan,” “potential,” “predict,” “forecast,”
“project,” and similar expressions, as well as variations or
negatives of these words.
Although forward-looking statements are made
based upon management’s present expectations and reasonable beliefs
concerning future developments and their potential effect upon the
Company, a number of factors could cause the Company’s actual
results to differ materially from those set forth in the
forward-looking statements. Such factors may include, but are not
limited to: the Company’s ability to remain qualified as a REIT;
the Company’s exposure to U.S. federal and state income tax law
changes, including changes to the REIT requirements; general
adverse economic and real estate conditions; macroeconomic and
geopolitical factors, including but not limited to inflationary
pressures, interest rate volatility, global supply chain
disruptions, and ongoing geopolitical war; the ultimate geographic
spread, severity and duration of pandemics such as the COVID-19
Pandemic and its variants, actions that may be taken by
governmental authorities to contain or address the impact of such
pandemics, and the potential negative impacts of such pandemics on
the global economy and the Company’s financial condition and
results of operations; the inability of major tenants to continue
paying their rent or obligations due to bankruptcy, insolvency or a
general downturn in their business; the loss or failure, or decline
in the business or assets of PINE; the completion of 1031 exchange
transactions; the availability of investment properties that meet
the Company’s investment goals and criteria; the uncertainties
associated with obtaining required governmental permits and
satisfying other closing conditions for planned acquisitions and
sales; and the uncertainties and risk factors discussed in the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2021 and other risks and uncertainties discussed from
time to time in the Company’s filings with the U.S. Securities and
Exchange Commission.
There can be no assurance that future
developments will be in accordance with management’s expectations
or that the effect of future developments on the Company will be
those anticipated by management. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. The Company undertakes
no obligation to update the information contained in this press
release to reflect subsequently occurring events or
circumstances.
Contact: |
|
Matthew M.
Partridge |
|
|
Senior Vice
President, Chief Financial Officer and Treasurer |
|
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(407)
904-3324 |
|
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mpartridge@ctoreit.com |
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