Market Overview

CCG Upsizes Unsecured Credit Facility to $300MM & Closes Freddie Financing

Campus Crest Communities (NYSE: CCG) announced today that it has amended and restated its unsecured credit facility, which is now comprised of a $250 million revolver and a $50 million term loan. This transaction is a significant milestone for the Company for several reasons:

Increases facility size from $200 million to $300 million, with an accordion feature of up to $600 million(1) Extends initial term to four years with a one-year extension option(1) Provides ability to fully fund development properties while receiving borrowing base credit, which will make the development financing process more cost and time efficient Reduces pricing on the leverage-based grid Demonstrates support of existing bank group and adds new participants “This is a solid step in our corporate growth, as it provides necessary capital to continue to execute our growth plan. It indicates the faith and trust our banking partners have in our plan and people,” said Ted W. Rollins, CEO of Campus Crest.

The credit facility was arranged by Citigroup Global Markets, Inc., Barclays Capital and Raymond James Bank, N.A. as Joint Lead Arrangers and Joint Book Running Managers. Citibank, N.A. is the Administrative Agent, and Barclays Bank PLC & Raymond James Bank, N.A. are Co-Syndication Agents. Bank of America, N.A. & Royal Bank of Canada are Documentation Agents. New additions to the banking group include Bank of America, N.A., PNC Bank, N.A., Compass Bank (BBVA Compass) and Citizens Bank of Pennsylvania (RBS Citizens).

Additionally, the Company announced that it continues to selectively utilize agency financing with the closing of a new 10-year, $18.1 million Freddie Mac financing on The Grove at Statesboro, GA at a rate of 4.01%. Proceeds from this financing were used to reduce outstanding balances under the Company's credit facility. This transaction represents the third series of permanent financings the Company has completed with Freddie Mac.

“We continue to benefit from posting strong results, the support of our banking partners and a favorable borrowing environment. The improved terms and additional $100 million of capacity on the credit facility give us the continued flexibility to pursue our growth objectives, which is important given the number of opportunities in our pipeline over the next few years,” said Donnie L. Bobbitt, Jr., the Company's CFO. “With this transaction, we added three assets to the unencumbered pool of the credit facility, resulting in nearly 60% of our wholly owned operating assets being unencumbered. This is important as we have an eye toward attaining an investment grade credit rating in the future. Additionally, we took advantage of another attractive Freddie financing, as we have selectively done at two other instances over the past 18 months. Prudently managing the balance sheet and opportunistically accessing capital continue to be two primary focuses of Campus Crest.”

Posted-In: News Financing

 

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