EastGroup Closes $80M Unsecured Term Loan
EastGroup Properties, Inc. (NYSE: EGP) today announced the closing of an $80 million unsecured term loan. The loan has a six-year term and interest only payments. It bears interest at the annual rate of LIBOR plus 190 basis points subject to a pricing grid for changes in the Company's leverage or credit ratings. The Company also entered into an interest rate swap to convert the loan's LIBOR rate to a fixed interest rate, providing the Company an effective fixed rate of 2.92% per annum as of closing. The Company plans to use the proceeds to reduce its variable rate bank borrowings.
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