Centerspace Expands Capacity with $100 Million Term Loan

Rhea-AI Summary

Centerspace (NYSE: CSR) announced the closing of a $100 million term loan with PNC Bank on November 22, 2022. The loan bears a floating interest rate of 1.20% to 1.75% over the Secured Overnight Financing Rate (SOFR) and has a term of one year with a possible one-year extension. Proceeds will be used to repay part of the existing credit facility. According to President and CEO Mark O. Decker, this financing enhances the company's capacity and flexibility amidst a challenging capital markets environment.

Positive

• Secured a $100 million term loan, enhancing liquidity.
• Loan bears a competitive floating interest rate of 1.20% to 1.75%.

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• None.

MINNEAPOLIS, Nov. 28, 2022 /PRNewswire/ -- Centerspace (NYSE: CSR) announced that on November 22, 2022, it closed on a $100 million term loan with PNC Bank as administrative agent. The loan currently bears interest at a floating rate of 1.20% to 1.75% over the Secured Overnight Financing Rate, or SOFR, based upon Centerspace's leverage ratio and is for a term of one year with a one-year extension option. Proceeds from the term loan will be used to repay a portion of the balance on Centerspace's existing credit facility. 

"The term loan augments our capacity and provides us with financial flexibility as we continue to optimize our portfolio strategy and market exposure. We are extremely pleased with the execution in this challenging capital markets backdrop, and it demonstrates the strength of our institutional relationships." said Mark O. Decker, Jr., Centerspace's President and CEO. 

About Centerspace 

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, the company currently owns 84 apartment communities consisting of 15,064 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for 2022 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.

If you would like more information about this topic, please contact Joe McComish, Investor Relations, at (701) 837-7104 or IR@centerspacehomes.com.

Contact Information
Joe McComish, Investor Relations
Phone : (701) 837-7104
E-mail : IR@centerspacehomes.com

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SOURCE Centerspace

FAQ

What is the purpose of Centerspace's $100 million term loan?

The $100 million term loan will be used to repay a portion of Centerspace's existing credit facility.

When did Centerspace close its term loan with PNC Bank?

Centerspace closed the term loan with PNC Bank on November 22, 2022.

What is the interest rate of Centerspace's term loan?

The interest rate on Centerspace's term loan ranges from 1.20% to 1.75% over SOFR.

How long is the term for Centerspace's loan?

The term for Centerspace's loan is one year, with an option for a one-year extension.

Which bank is the administrative agent for Centerspace's loan?

PNC Bank is the administrative agent for Centerspace's $100 million term loan.