Pennsylvania Real Estate Investment Trust, which counts the Capital City Mall and North Hanover Mall among its holdings, has entered into a $400 million revolving credit agreement.
The agreement replaces term loans and a revolving credit agreement entered into in 2010, PREIT said. The investment trust said it used $192.5 million of the new facility to pay down those amounts.
The new credit agreement moves PREIT's borrowing from secured to unsecured and gives it "increased borrowing capacity, reduced interest rate spreads, an extended term and compressed capitalization rates utilized for determinating leverage," the company said in a statement.
The term is three years, with an option of two one-year extensions, PREIT said. The interest on borrowings will be LIBOR plus 1.5 percent to 2.05 percent, depending on leverage, it said.
The agreement has an "accordion feature" allowing borrowing up to $600 million, the company said. Wells Fargo Bank handled the transaction, PREIT said.
PREIT, based in Philadelphia, owns or part-owns 46 properties in 13 states on the East Coast. Besides Capital City and North Hanover malls, it has a 50 percent stake in Red Rose Commons in Lancaster County, according to an annual report filed this year with the U.S. Securities and Exchange Commission.
In January, PREIT completed the sale of Paxton Towne Center.