REITs Obtain Secured Financing

GPT Property Trust Inc., the operating subsidiary of Gramercy Property Trust Inc., has obtained a $100 million senior secured revolving credit facility from a group of lenders led by affiliates Deutsche Bank as the administrative agent and lead arranger.

The line has an accordion feature that will increase it to $150 million. There is a two-year term with a one-year extension option and advances bear interest at Libor plus a range of 190 basis points to 275 bps. Details were disclosed on an 8-K filing obtained through DisclosureNet.com.

GPT is required to meet minimum net worth requirements, maintain a maximum leverage ratio not to exceed 60% and have liquidity of $10 million or greater; the liquidity requirement applies until March 31, 2014.

Separately RLJ Lodging Trust got a $150 million secured line from Wells Fargo. Proceeds were used to repay an existing credit facility which RLJ drew upon to finance a portion of a debt refinancing.

Thomas J. Baltimore, Jr., president and CEO, said, “We are very pleased with the overall execution and the favorable economic terms of our new debt. The increased flexibility and liquidity from our balance sheet will enable us to continue to seek opportunistic acquisitions and deliver meaningful shareholder returns.”

Specifically, RLJ obtained three first mortgages secured by four assets. The loans are interest only for two years, with a floating rate indexed to Libor plus 240 bps. Terms are for three years, with four one-year extension options.

Meanwhile, Ashford Hospitality Trust Inc. has gotten a $69 million loan secured by the Pier House Resort in Key West, Fla.

The loan has a two-year term, options for three extensions and a floating interest rate of Libor plus 490 bps.

"Capitalizing on present conditions in the debt market allowed us to complete this financing of the Pier House Resort at very attractive terms while realizing substantial proceeds to further strengthen our liquidity position," commented Monty J. Bennett, chairman and CEO.