Independence Realty Trust Announces Expanded and Consolidated Unsecured Credit Facility
December 14 2021 - 4:05PM
Business Wire
Independence Realty Trust, Inc. (NYSE: IRT) (“IRT”) today
announced that its operating partnership, Independence Realty
Operating Partnership, LP, entered into an amended and restated
unsecured credit facility. The new facility increases the borrowing
capacity under IRT’s existing revolving credit facility from $350
million to $500 million and extends the maturity date of the
revolving credit facility from May 2023 to January 2026. Proceeds
from the expanded revolving credit facility will be used for
general corporate purposes.
The amended and restated unsecured credit facility also
consolidates IRT’s three outstanding term loans in the aggregate
amount of $500 million. The financial terms of the three term loans
were not changed and their respective maturity dates remain as (1)
May 2026 for the $200 million term loan originally made in 2021,
(2) January 2024 for the $200 million term loan originally made in
2018 and (3) November 2024 for the $100 million term loan
originally made in 2017.
Borrowings under the revolving credit facility continue to bear
interest at LIBOR plus 1.25% to 2.00% based on IRT’s consolidated
leverage ratio. At closing, the interest rate on the revolving
credit facility is LIBOR plus 1.25% and on the outstanding term
loans is LIBOR plus 1.20%, which each represent an approximate 10
basis point reduction from the existing interest rates.
“This expanded and consolidated unsecured credit facility
continues to strengthen our capital structure. We are now
well-equipped to support our growing portfolio of approximately
38,000 units across the high-growth U.S. Sunbelt region, which
includes the anticipated closing of our merger with Steadfast
Apartment REIT later this week,” said James J. Sebra, IRT’s Chief
Financial Officer. “Through this credit facility, we have extended
our maturities and increased our financial flexibility.”
KeyBank National Association is the Administrative Agent under
the unsecured credit facility. KeyBanc Capital Markets, Inc. and
Citibank, N.A. are Joint Bookrunners under the unsecured credit
facility and KeyBanc Capital Markets, Inc., Citibank, N.A., and The
Huntington National Bank are Joint Lead Arrangers. The facilities’
Co-Syndication Agents include Citibank, N.A. and The Huntington
National Bank, and the Co-Documentation Agents are Bank of America,
N.A., Barclays Bank PLC, BMO Harris Bank N.A., Capital One,
National Association, Citizens Bank, N.A., PNC Bank, National
Association, Regions Bank, Royal Bank of Canada, and Truist
Bank.
About Independence Realty Trust, Inc.
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate
investment trust that owns and operates multifamily apartment
properties across non-gateway U.S. markets, including Atlanta,
Dallas, Louisville, Memphis, Raleigh and Tampa. IRT’s investment
strategy is focused on gaining scale within key amenity rich
submarkets that offer good school districts, high-quality retail
and major employment centers. IRT aims to provide stockholders
attractive risk-adjusted returns through diligent portfolio
management, strong operational performance, and a consistent return
on capital through distributions and capital appreciation. More
information may be found on IRT’s website at www.irtliving.com.
Forward-Looking Statements
This press release contains certain 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. Such forward-looking statements can generally be
identified by our use of forward-looking terminology such as
“will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or
other similar words. These forward-looking statements include,
without limitation, our expectations with respect to capital
allocations and growth opportunities. Because such statements
include risks, uncertainties and contingencies, actual results may
differ materially from the expectations, intentions, beliefs, plans
or predictions of the future expressed or implied by such
forward-looking statements. These forward-looking statements are
based upon the current beliefs and expectations of our management
and are inherently subject to significant business, economic and
competitive uncertainties and contingencies, many of which are
difficult to predict and generally not within our control. In
addition, these forward-looking statements are subject to
assumptions with respect to future business strategies and
decisions that are subject to change. Risks and uncertainties that
might cause our actual results to differ materially from those
expressed or implied by forward-looking statements include, but are
not limited to: risks related to the impact of COVID-19 and other
potential future outbreaks of infectious diseases on our financial
condition, results of operations, cash flows and performance and
those of our residents as well as on the economy and real estate
and financial markets; changes in market demand for rental
apartment homes and pricing pressures, including from competitors,
that could limit our ability to lease units or increase rents or
that could lead to declines in occupancy and rent levels;
uncertainty and volatility in capital and credit markets, including
changes that reduce availability, and increase costs, of capital;
inability of tenants to meet their rent and other lease obligations
and charge-offs in excess of our allowance for bad debt;
legislative restrictions that may delay or limit collections of
past due rents; risks endemic to real estate and the real estate
industry generally; impairment charges; the effects of natural and
other disasters; delays in completing, and cost overruns incurred
in connection with, our value add initiatives and failure to
achieve projected rent increases and occupancy levels on account of
the initiatives; the structure, timing and completion of our
pending merger transaction with Steadfast Apartment REIT, Inc.
(“STAR”) and any effects of the pendency or completion of the
merger, including failure to realize the cost savings, synergies
and other benefits expected to result from the merger; the ability
to successfully integrate the IRT and STAR businesses; the
occurrence of any event, change or other circumstances that could
give rise to the termination of the merger agreement; the risk that
the parties may not be able to satisfy the conditions to the merger
in a timely manner or at all; risks related to disruption of
management time from ongoing business operations due to the pending
merger transaction; the risk that the merger could have an adverse
effect on our ability to retain and hire key personnel and maintain
relationships with our customers and suppliers, and on our
operating results and businesses generally; unexpected costs of
REIT qualification compliance; unexpected changes in our intention
or ability to repay certain debt prior to maturity; inability to
sell certain assets within the time frames or at the pricing levels
expected; costs and disruptions as the result of a cybersecurity
incident or other technology disruption; and share price
fluctuations. Please refer to the documents filed by us with the
SEC, including specifically the “Risk Factors” sections of our Form
10-K for the year ended December 31, 2020, our subsequently filed
quarterly reports on Form 10-Q and our other filings with the SEC,
which identify additional factors that could cause actual results
to differ from those contained in forward-looking statements. We
undertake no obligation to update these forward-looking statements
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events, except as may be
required by law.
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Independence Realty Trust, Inc. Edelman Financial
Communications & Capital Markets Ted McHugh and Lauren Torres
917-365-7979 IRT@edelman.com
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