Centerspace Improves And Extends Credit Line; Repays Bank Loans

Rhea-AI Summary

Centerspace (NYSE: CSR) has announced the amendment and extension of its $250 million revolving credit facility, allowing for an accordion feature up to $400 million, maturing in September 2025. The company fully repaid existing bank term loans totaling $145 million using proceeds from a new $125 million unsecured senior notes issuance and additional refinancing. These actions reduced Centerspace's weighted average interest from 3.70% to 3.35% and extended maturities from 4.9 years to 7.6 years, enhancing its financial flexibility in a competitive market.

Positive

• Reduced weighted average interest from 3.70% to 3.35%.
• Extended average maturity from 4.9 years to 7.6 years.
• Enhanced financial flexibility with the amended credit facility.

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• None.

MINNEAPOLIS, Sept. 30, 2021 /PRNewswire/ -- Centerspace (NYSE: CSR) announced today that it has amended and extended its existing $250 million revolving credit facility. The new facility includes an accordion feature for up to $400 million and matures in September 2025 with two optional six-month extensions. In addition to the new line of credit, the existing bank term loans totaling $145 million were repaid in full with proceeds from the issuance of $125 million in unsecured senior notes as well as the additional proceeds from the KMS portfolio refinance.

Bank of Montreal served as administrative agent for the extension of the credit facility with BMO Capital Markets Corp., BofA Securities, Inc. and PNC Capital Markets, LLC as, joint lead arrangers and joint book runners.

"This recast completes a series of financing activities this quarter that meaningfully lower our average cost of borrowing and extend our average duration," said Mark O. Decker Jr., President and CEO. "The completed financing activities decreased our weighted average interest from 3.70% at June 30, 2021, to 3.35% and our weighted average maturities from 4.9 years at June 30, 2021 to 7.6 years.  We're grateful for our bank group's work to help Centerspace build greater financial flexibility.  These actions enhance our ability to compete in today's environment."

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 79 apartment communities consisting of 14,275 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for 2021 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.

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

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SOURCE Centerspace

FAQ

What is the significance of Centerspace's credit facility extension announced on September 30, 2021?

Centerspace extended its $250 million credit facility to $400 million, improving financial flexibility and reducing borrowing costs.

How does Centerspace's new financing affect its borrowing costs?

The new financing reduces the weighted average interest from 3.70% to 3.35%.

What are the maturity details of Centerspace's new credit facility?

The facility matures in September 2025, with options for two six-month extensions.

What was the total amount of bank term loans repaid by Centerspace?

Centerspace repaid $145 million in existing bank term loans as part of its refinancing.