UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 1.01. Entry into a Material Definitive Agreement.
Amendment to Term Loan Agreement
On April 16, 2021, Federal Realty Investment Trust (the “Company”) entered into an amendment (the “Amendment”) to its Term Loan Agreement, dated May 6, 2020, among the Company, as Borrower, the financial institutions party thereto and their permitted assignees, as Lenders, PNC Bank, National Association, as Administrative Agent, and the other parties thereto (the “Agreement”). Among other things, the Amendment extended the maturity date of the unsecured term loan outstanding under the Agreement from May 6, 2021 to April 16, 2024. Under the Amendment, the Company has the right, exercisable two times, to extend the maturity date by twelve months. The Amendment also reduced the applicable margins used to calculate the interest rates on loans outstanding under the Agreement, as set forth therein, to the amounts provided in the following table:
| Level |
Borrower’s Credit Rating (S&P/Moody’s or equivalent) |
Applicable Margin for all LIBOR Loans |
Applicable Margin for all Base Rate Loans |
|||||||
| 1 |
A/A2 (or equivalent) or better | 0.750 | % | 0.750 | % | |||||
| 2 |
A-/A3 (or equivalent) | 0.800 | % | 0.800 | % | |||||
| 3 |
BBB+/Baa1 (or equivalent) | 0.850 | % | 0.850 | % | |||||
| 4 |
BBB/Baa2 (or equivalent) | 1.000 | % | 1.000 | % | |||||
| 5 |
BBB-/Baa3 (or equivalent) | 1.250 | % | 1.250 | % | |||||
| 6 |
Lower than BBB-/Baa3 (or equivalent) | 1.650 | % | 1.650 | % | |||||
In connection with the Amendment, the Company repaid $100,000,000 of principal amount outstanding under the Agreement, leaving $300,000,000 as the remaining principal amount outstanding thereunder. The Amendment also added an accordion feature allowing the Company to increase the principal balance under the Agreement to up to $500,000,000.
The foregoing summary of the Amendment does not constitute a complete description of, and is qualified in its entirety by reference to, the terms and conditions of the Amendment, which is filed herewith as Exhibit 10.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. |
Description | |
| 10.1 | First Amendment to Term Loan Agreement, dated as of April 16, 2021, by and among the Lenders, New Lenders, Departing Lenders (as each such term is defined therein) and PNC Bank, National Association, as Administrative Agent | |
| 104 | Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document) | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FEDERAL REALTY INVESTMENT TRUST | ||||||
| Date: April 19, 2021 | By: | /s/ Dawn M. Becker | ||||
| Dawn M. Becker | ||||||
| Executive Vice President-General Counsel and Secretary | ||||||