Slate Retail REIT Nails Down $858M Refi

The debt refinancing package will help the grocery-anchored investment specialist capitalize on a robust pipeline of acquisition opportunities.
Grocery store interior. Image via Pixabay
Grocery store interior. Image via Pixabay

Slate Retail REIT, of Toronto, has nearly completed a three-part refinancing that’s worth $858 million in total. The three components are a $525 million revolving credit facility and term loan, a $250 million term loan and an $83 million, 10-year mortgage.

READ ALSO: Simon’s $3.6B Taubman Buy a Positive Sign for Class A Malls

Slate Retail REIT is entirely focused on being an owner and operator of U.S. grocery-anchored real estate. Its 79 retail assets total about 10.2 million square feet and are valued around $1.3 billion. Slate’s properties are mostly on or east of a line connecting Detroit and Nashville, including multiple properties in Atlanta, Florida and Charlotte, N.C.

Overall, the $858 million in total debt refinancing, according to Slate, provides annual interest savings of $1.7 million, extends weighted average debt maturity to 4.8 years and will provide about $212 million of borrowing capacity.

The members of the lending syndicate(s) were not disclosed, and as of press time, Slate had not replied to Commercial Property Executive’s request for this and additional information.

A substantial trident

Here’s a more detailed breakdown:

  • The $525 million revolving credit facility and term loan carry four- and five-year terms, respectively, and the former has two six-month extensions at Slate’s option. Pricing has been reduced on the revolving credit facility and term loan by 15 and 25 basis points, respectively.
  • The $250 million term loan amendment reduced the pricing on Slate’s $250 million term loan, due in 2023, by 25 basis points.
  • The new $83 million mortgage (expected to close before the end of this quarter) would be at 3.48 percent, with a 10-year term and a 30-year amortization. This loan would be secured by a pool of eight properties and will be non-recourse to the REIT. Proceeds will be used to reduce borrowings on Slate’s revolving credit facility.

In a December podcast with Commercial Property Executive, Cedar Realty Trust President & CEO Bruce Schanzer described why the resilience of grocery-anchored retail makes it a safe haven for investors.