One Liberty Properties, Inc. Expands Revolving Credit Facility Flexibility and Term

Rhea-AI Summary

One Liberty Properties, Inc. (NYSE:OLP) has amended its $100 million credit facility, extending its terms to December 2026. The amendment increases available borrowing for renovation and operating expenses to the lesser of $40 million or 40% of the borrowing base. The interest rate will now be based on 30-day SOFR, and compliance with revised covenants is required. This move enhances financial flexibility, positioning the company to navigate economic challenges and pursue new opportunities while aiming to maximize long-term stockholder value.

Positive

• Credit facility extended through December 2026.
• Increased borrowing capacity for renovation and operating expenses to $40 million.
• Interest rate based on 30-day SOFR, potentially reducing financing costs.

Negative

• None.

GREAT NECK, N.Y., Nov. 09, 2022 (GLOBE NEWSWIRE) -- One Liberty Properties, Inc. (NYSE:OLP) entered into an amendment to its $100 million credit facility which extends the facility through December 2026, increases the amount available to be borrowed for renovation and operating expense purposes to the lesser of $40 million and 40% of the borrowing base, provides that the interest rate will be based on 30-day SOFR and requires compliance with certain amended and additional covenants. Net proceeds received from the sale, financing or refinancing of properties are generally required to be used to repay amounts outstanding under the facility.

Patrick J. Callan, Jr., President and Chief Executive Officer at One Liberty Properties, Inc., stated, “The increased financial flexibility of our credit facility further ensures that we are well-positioned to effectively navigate the challenging macro-economic environment and to take advantage of potential opportunities that could emerge. We remain committed to maintaining a strong balance sheet that supports our efforts to maximize long-term stockholder value.”

The financing is led by Manufacturers and Traders Trust Company and an affiliate of Valley National Bank.

About One Liberty Properties, Inc.:

One Liberty is a self-administered and self-managed real estate investment trust incorporated in Maryland in 1982. The Company acquires, owns and manages a geographically diversified portfolio consisting primarily of industrial and retail properties. Many of these properties are subject to long term net leases under which the tenant is typically responsible for the property’s real estate taxes, insurance and ordinary maintenance and repairs.

Contact: Investor Relations
One Liberty Properties, Inc.
Telephone (516) 466-3100
www.1liberty.com

FAQ

What changes were made to One Liberty Properties' credit facility on November 9, 2022?

On November 9, 2022, One Liberty Properties amended its $100 million credit facility to extend it through December 2026 and to increase available borrowing for renovation and operating expenses to $40 million.

What is the new interest rate structure for One Liberty Properties' credit facility?

The interest rate for One Liberty Properties' credit facility will now be based on 30-day SOFR.

How will the amendment to the credit facility affect One Liberty Properties' financial flexibility?

The amendment enhances One Liberty Properties' financial flexibility, allowing the company to navigate economic challenges and pursue new opportunities.

Who led the financing for One Liberty Properties' credit facility?

The financing for One Liberty Properties' credit facility was led by Manufacturers and Traders Trust Company and an affiliate of Valley National Bank.