Regency Centers Corporation
(
REG
), a real estate investment trust (REIT), has recently closed a
$250 million unsecured term loan to increase its liquidity and fund
its huge development pipeline. The five-year term loan is scheduled
to mature in December 2016 and includes an accordion feature that
would enable Regency to repay it fully before maturity without any
prepayment charges.
Wells Fargo Securities LLC, the investment banking division of
Wells Fargo & Company
(
WFC
) is acting as the sole Lead Arranger and Bookrunner for the debt
facility. The term loan bears an interest rate of LIBOR plus 145
basis points, which is currently based on the long-term unsecured
debt ratings of the company.
Earlier during third quarter 2011, Regency refinanced its $600
million unsecured revolving credit facility. The new credit
facility is scheduled to expire in September 2015 with a one-year
extension option and bears an annual interest rate of LIBOR plus
150 basis points.
These financial measures are aimed at maintaining a conservative
capital structure with sufficient cash to fuel its growth engine.
As part of its corporate strategy, Regency continuously seeks to
create value from new development opportunities, and has developed
205 shopping centers since fiscal 2000 (including those currently
in-process), representing an investment at completion of $3.0
billion.
By the end of third quarter 2011, Regency had 22 projects in
various stages of construction for an estimated total investment at
completion of $378.9 million. These in-process developments are
presently 96% funded and 87% leased.
Jacksonville, Florida-based Regency owns, operates, and develops
grocery-anchored retail shopping centers in the U.S. The company
seeks to own assets in high-income in-fill markets that are
tenanted by market-dominant grocers, category-leading anchors,
specialty retailers and restaurants.
The average household income in the markets where Regency has a
significant presence is over $96,000, nearly 33% higher than the
national average. Regency's quality portfolio is anchored by
dominant grocers such as
The Kroger Co.
(
KR
) and leading national retailers such as
Target Corp.
(
TGT
), which drive traffic into its centers.
We maintain our 'Neutral' recommendation on Regency, which
currently has a Zacks #3 Rank that translates into a short-term
'Hold' rating.
KROGER CO (
KR
): Free Stock Analysis Report
REGENCY CTRS CP (
REG
): Free Stock Analysis Report
TARGET CORP (
TGT
): Free Stock Analysis Report
WELLS FARGO-NEW (
WFC
): Free Stock Analysis Report
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