HOUSTON, Sept. 19, 2022 (GLOBE NEWSWIRE) — Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) right now introduced that by its working partnership, Whitestone REIT Operating Partnership, L.P. (the “Operating Partnership”), it has amended and prolonged its $515 million credit score facility, comprised of a $250 million revolver and $265 million time period mortgage. The facility, which may be elevated to $715 million by an accordion function is scheduled to mature, for the $250 million revolver, on September 16, 2026, with two further six-month choices to increase the maturity date to September 16, 2027, and for the $265 million time period mortgage on January 31, 2028. Borrowings below the power accrue curiosity (on the Operating Partnership’s possibility) at a Base Rate or an Adjusted Term SOFR plus an relevant rate of interest margin primarily based upon the Company’s then present leverage. The revolver has an preliminary rate of interest of SOFR plus 1.60%(1) and a ten foundation level credit score unfold adjustment. In addition, the Company entered into rate of interest swaps to repair the rates of interest on the $265 million time period mortgage. The time period mortgage has the next charges:
- 2.16% plus 1.55%(1) by October 28, 2022
- 2.80% plus 1.55%(1) from October 29, 2022 by January 31, 2024
- 3.42% plus 1.55%(1) from February 1, 2024 by January 31, 2028
The recast facility additionally options an Environmental, Social and Governance (“ESG”) pricing provision whereby the relevant rate of interest margin may be adjusted primarily based on the Company’s efficiency on sure sustainability efficiency targets.
“The renewed credit facilities’ attractive terms reflect our strengthening balance sheet and provides us additional liquidity and financial flexibility,” stated Dave Holeman, Whitestone’s CEO. “We appreciate the support of our bank group, and we are encouraged by the new banking relationships that participated in the transaction.”
The co-lead arrangers and joint-book runners for the power had been BMO Capital Markets Corp., Truist Bank, Capital One, National Association, and U.S. Bank National Association. BMO Capital Markets Corp. will proceed to be the executive agent for the credit score facility and Truist Bank will proceed to be the syndication agent. Capital One, National Association and U.S. Bank National Association will function documentation brokers and BMO Capital Markets Corp. will function the sustainability structuring agent. Deutsche Bank AG, Associated Bank, National Association and S&T Bank are additionally individuals within the credit score facility.
(1) Based on the Company’s present leverage ratio as outlined within the facility. Please see right now’s 8–Ok for extra element.
About Whitestone REIT
Whitestone REIT (NYSE: WSR) is a community-centered actual property funding belief (REIT) that acquires, owns, operates, and develops open-air, retail facilities situated in a number of the quickest rising markets within the nation: Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio.
Our facilities are comfort targeted: merchandised with a mixture of service-oriented tenants offering meals (eating places and grocers), self-care (well being and health), companies (monetary and logistics), schooling and leisure to the encompassing communities. The firm believes its robust neighborhood connections and deep tenant relationships are key to the success of its present facilities and its acquisition technique. For further data, please go to www.whitestonereit.com.
Forward Looking Statements
Certain statements contained on this press launch represent forward-looking statements throughout the which means of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends for all such forward-looking statements to be lined by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as relevant. Such data is topic to sure dangers and uncertainties, in addition to recognized and unknown dangers, which may trigger precise outcomes to vary materially from these projected or anticipated. Therefore, such statements will not be supposed to be a assure of our efficiency in future durations. Such forward-looking statements embody statements about our earnings steering, future liquidity, efficiency progress and expectations and different issues and can typically be recognized by the Company’s use of forward-looking terminology, akin to “may,” “will,” “plan,” “expect,” “intend,” “anticipate,” “believe,” “continue,” “goals” or related phrases or phrases which are predictions of future occasions or tendencies and which don’t relate solely to historic issues. The following are further elements that would trigger the Company’s precise outcomes and its expectations to vary materially from these described within the Company’s forward-looking statements: uncertainties associated to the COVID-19 pandemic, together with the unknown period and financial, operational and monetary impacts of the COVID-19 pandemic, and the actions taken or contemplated by U.S. and native governmental authorities or others in response to the pandemic on the Company’s business, staff and tenants, together with, amongst others, (a) modifications in tenant demand for the Company’s properties, (b) monetary challenges confronting main tenants, together with on account of decreased clients’ willingness to frequent, and mandated keep in place orders which have prevented clients from frequenting, a few of Company’s tenants’ companies and the affect of those points on the Company’s capacity to gather lease from its tenants; (c) operational modifications applied by the Company, together with distant working preparations, which can put elevated pressure on IT methods and create elevated vulnerability to cybersecurity incidents, (d) vital discount within the Company’s liquidity as a result of a diminished borrowing base below its revolving credit score facility and restricted capacity to entry the capital markets and different sources of financing on enticing phrases or in any respect, and (e) extended measures to comprise the unfold of COVID-19 or the fluctuating government-imposed restrictions applied to comprise the unfold of COVID-19; adversarial financial or actual property developments or circumstances in Texas or Arizona, Houston and Phoenix particularly, together with on account of any resurgences in COVID-19 circumstances in such areas and the affect on our tenants’ capacity to pay their lease, which may end in dangerous debt allowances or straight-line lease reserve changes; the imposition of federal revenue taxes if we fail to qualify as an actual property funding belief (“REIT”) in any taxable yr or forego a possibility to make sure REIT standing; the Company’s capacity to fulfill its long-term objectives, together with its capacity to execute successfully its acquisition and disposition technique, to proceed to execute its growth pipeline on schedule and on the anticipated prices, and its capacity to develop its NOI as anticipated, which might be impacted by quite a few elements, together with, amongst different issues, its capacity to proceed to resume leases or re-let house on enticing phrases and to in any other case handle its leasing rollover; its capacity to efficiently determine, finance and consummate appropriate acquisitions, and the affect of such acquisitions, together with financing developments, capitalization charges and inner charges of return; the Company’s capacity to scale back or in any other case successfully handle its normal and administrative bills; the Company’s capacity to fund from money flows or in any other case distributions to its shareholders at present charges or in any respect; present adversarial market and financial circumstances together with, however not restricted to, the numerous volatility and disruption within the world monetary markets attributable to the COVID-19 pandemic; lease terminations or lease defaults; the affect of competitors on the Company’s efforts to resume present leases; modifications within the economies and different circumstances of the particular markets by which the Company operates; financial, legislative and regulatory modifications, together with modifications to legal guidelines governing REITs and the affect of the laws generally often known as the Tax Cuts and Jobs Act; the success of the Company’s actual property methods and funding targets; the Company’s capacity to proceed to qualify as a REIT below the Internal Revenue Code of 1986, as amended; and different elements detailed within the Company’s most up-to-date Annual Report on Form 10-Ok, Quarterly Reports on Form 10-Q and different paperwork the Company information with the Securities and Exchange Commission on occasion.
Investor and Media Contact:
David Mordy
Director of Investor Relations
Whitestone REIT
(713) 435-2219
[email protected]
