Giving Credit Where It’s Due: TNP Retail Trust Lands Major Credit Deal

The inside view of a Shopping Mall
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The economic downturn’s longest-lasting effect is in the chilling of the credit markets.  Without the lubricating capital to finance acquisitions, expansions and development, the commercial real estate economic engine sputters or halts. Loud concerns about unavailable credit were heard from nearly every commercial RE pro in attendance at NAR’s annual this past November. Yet, as 2011 approaches, there are strong signs of the engine turning over again.  Will we leave the ditch behind?

TNP Strategic Retail Trust’s recent deal with KeyBank National Association securing $35M in revolving credit seems to qualify as good news on that front, suggesting that investment in shopping malls across Main Street America is back in vogue.  From David Bodamer at RetailTraffic.com:

TNP Strategic Retail Trust Inc. entered, through certain of its wholly owned subsidiaries, into a secured revolving credit facility with KeyBank National Association. The facility has an initial aggregate leading commitment of up to $35 million. It replaces TNP’s existing $15 million credit facility, which matured on Dec. 17. The new facility includes an accordion feature that allows for an increase in commitments of up to $150 million as the company continues to grow. It has an initial maturity date of Dec. 17, 2013, subject to extension.
The facility will be secured by certain TNP-owned properties and will be subject to a number of financial covenants, including minimum and maximum limits on the company’s total leverage ratio, interest coverage ratio, fixed charge coverage ratio, liquidity and tangible net worth. TNP may use the facility for acquisitions and investments in real estate-related assets, capital and tenant improvements at existing and future properties, debt refinancing and other general working capital purposes.

“We are pleased to expand our relationship with KeyBank and appreciate their continued support and confidence in our company,” said Anthony W. “Tony” Thompson, CEO of TNP, in a statement. “Additionally, we expect that this increased flexibility and borrowing capacity will allow us to compete for almost any [appropriate] property.”

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