Markets
WPC

Cousins Properties Reorganizes New Credit Facility - Analyst Blog

On Wednesday, Cousins Properties Inc. ( CUZ ), the Atlanta-based real estate investment trust (REIT), announced the closing of a fresh $500 million unsecured revolving credit facility. This replaces the existing $350 million facility scheduled to mature in Feb 2016. The new credit facility will mature in May 2019.

For this new credit facility, the benchmark London Interbank Offered Rate (LIBOR) borrowing spread has been lowered to a range of 110-145 basis points, from the earlier 150-210 basis points. The exact spread over LIBOR, however, depends upon the company's leverage position.

Per the leverage of Mar 31, 2014, the spread in excess of LIBOR for this new credit facility was 110 basis points. However, this new line of credit is contingent upon some financial covenants. According to these, Cousins Properties has to maintain an overall leverage ratio of maximum 60%, an unencumbered interest coverage ratio of at least 2.00 and a fixed charge coverage ratio of at least 1.50.

Cousins Properties is actively engaged in development, acquisition, financing, management and leasing of real estate properties. The company primarily invests in top-tier urban office properties and opportunistic mixed-use developments in Sunbelt markets.

This credit rearrangement is encouraging as it paves way for a lower interest expense as well as financial flexibility for its growth pursuits.

Cousins Properties currently holds a Zacks Rank #3 (Hold). Some better-ranked equity REITs include The GEO Group, Inc. ( GEO ), W. P. Carey Inc. ( WPC ) and Terreno Realty Corp. ( TRNO ). All these stocks sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

COUSIN PROP INC (CUZ): Free Stock Analysis Report

TERRENO REALTY (TRNO): Free Stock Analysis Report

WP CAREY INC (WPC): Free Stock Analysis Report

GEO GRP INC/THE (GEO): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

WPC GEO CUZ TRNO

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More