CTO Realty Growth upsizes credit facility to $565M

Sep. 21, 2022 4:24 PM ETCTO Realty Growth, Inc. (CTO)By: Jessica Kuruthukulangara, SA News Editor
  • CTO Realty Growth (NYSE:CTO) said Wednesday it amended its senior unsecured revolving credit facility, increasing it to $565M.
  • The credit facility is comprised of a $300M unsecured revolving credit facility, a new $100M unsecured term loan, and CTO's existing $165M of unsecured term loans.
  • The credit facility includes accordion options that allow CTO to request additional revolver lender commitments up to $750M and additional term loan lender commitments up to $500M.
  • It includes a sustainability-linked pricing component that reduces the interest rate margin if CTO meets certain sustainability targets.
  • The credit facility also transitions CTO from LIBOR to SOFR borrowings.
  • The revolver will mature in Jan. 2027, with options to extend the maturity for an additional year to Jan. 2028.
  • Initial interest rate for the revolver will be SOFR plus 135 bps and a 10-bps SOFR index adjustment.
  • The 2028 term loan was fully drawn at close, and proceeds were used to repay outstanding balances on CTO's revolver.
  • The term loan has an initial interest rate of SOFR plus 130 bps and a 10-bps SOFR index adjustment.
  • CTO plans to fix its term loan SOFR exposure using interest rate swaps.

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