FARMINGTON HILLS, Mich., Sept. 30, 2015 (GLOBE NEWSWIRE) -- Ramco-Gershenson Properties Trust (NYSE:RPT) (the "Company") today announced that it has completed a $50 million private placement of senior unsecured notes. The financing has a ten-year term priced at a fixed interest rate of 4.09%. The Company has also reached an agreement in principle on the pricing of an additional $50 million of unsecured notes. The additional notes are expected to be issued in two $25 million tranches with terms of 9 and 11 years and a blended interest rate of 4.17%. The sale of these notes is expected to close on or before November 18, 2015. Proceeds from the financings are being used to repay $68.5 million in maturing mortgage debt with an average interest rate of 5.2% and borrowings outstanding under the Company's unsecured revolving line of credit.
Upon the closing of the new financings and the repayment of existing debt, the Company expects to benefit from a stronger balance sheet as reflected by the following measures:
- No outstanding debt maturities through the remainder of 2015;
- A weighted-average term to maturity of approximately 6.5 years;
- Well-staggered debt maturities with no more than 12% of total debt maturing in any single year;
- Unencumbered assets to unsecured senior debt coverage of 2.6x;
- 90% of total debt at fixed rates or swapped to fixed rates;
- Approximately $260 million of borrowing availability under the Company's $350 million unsecured revolving line of credit; and
- Approximately $1.9 billion of unencumbered operating real estate.
The issuance of the additional $50 million in senior unsecured notes is subject to customary conditions including, among others, the negotiation and execution of loan documents. There can be no assurance that these conditions will be satisfied or that the issuance of the notes will occur on the terms described herein or at all.
About Ramco-Gershenson Properties Trust
Ramco-Gershenson Properties Trust (NYSE:RPT) is a fully integrated, self-administered, publicly-traded real estate investment trust (REIT) based in Farmington Hills, Michigan. The Company's business is the ownership and management of large, multi-anchor shopping centers primarily in a dozen of the largest metropolitan markets in the United States. At June 30, 2015, the Company owned interests in and managed a portfolio of 78 shopping centers and one office building with approximately 16.7 million square feet of gross leasable area. At June 30, 2015, the Company's core operating portfolio was 95.3% leased. Additional information regarding the Company is available on its corporate website: www.rgpt.com.
This press release may contain forward-looking statements that represent the Company's expectations and projections for the future. Management of Ramco-Gershenson believes the expectations reflected in any forward-looking statements made in this press release are based on reasonable assumptions. Certain factors could occur that might cause actual results to vary, including deterioration in national economic conditions, weakening of real estate markets, decreases in the availability of credit, increases in interest rates, adverse changes in the retail industry, our continuing ability to qualify as a REIT and other factors discussed in the Company's reports filed with the Securities and Exchange Commission.
CONTACT: Company Contact: Dawn L. Hendershot, Vice President of Investor Relations and Corporate Communications 31500 Northwestern Highway, Suite 300 Farmington Hills, MI 48334 email@example.com (248) 592-6202Source:Ramco-Gershenson Properties Trust