PHILADELPHIA--(BUSINESS WIRE)--Independence Realty Trust, Inc. (NYSE:IRT), a multi-family apartment REIT, today announced it entered into a seven-year, $100 million unsecured term loan agreement, that will reach maturity in November 2024.
The proceeds will reduce borrowings currently outstanding under the revolving portion of IRT’s $300 million unsecured credit facility. The Term Loan bears interest at a spread over LIBOR, based on IRT’s overall leverage. At closing, the spread to LIBOR was 165 basis points. To continue IRT’s practice of reducing exposure to floating interest rates, IRT purchased a collar that caps LIBOR at 2.00%, subject to a floor on LIBOR of 1.25%, during the entire seven-year term of the new Term Loan.
“This agreement increases the capacity on our current line of credit, maintains our flexibility for future growth initiatives, and extends the maturity an additional 3 years beyond our current line of credit,” said Scott Schaeffer, IRT’s Chairman and Chief Executive Officer. “We continue to focus on maintaining a low-risk, high-quality balance sheet, and thank our lending partners for their continued support.”
The term loan was led by Keybanc Capital Markets, as administrative agent, as well as Capital One, National Association and the Huntington National Bank, as Co-Syndication Agents.
About Independence Realty Trust, Inc.
Independence Realty Trust (NYSE: IRT) is a real estate investment trust. Upon completion of the previously announced nine community portfolio acquisition, IRT will own and operate 55 multifamily apartment properties, totaling 15,165 units, across non-gateway U.S. markets, including Louisville, Memphis, Atlanta and Raleigh. IRT’s investment strategy is focused on gaining scale within key amenity rich submarkets that offer good school districts, high-quality retail and major employment centers. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return of capital through distributions and capital appreciation.