CTO Realty Growth closes $1 billion credit facility refinancing

CTO Realty Growth, Inc., a company listed on the NYSE under the ticker symbol CTO, has recently completed a significant financial transaction. The company announced the successful closure of a $1.0 billion amended and restated unsecured credit facility.

This new credit facility is composed of five separate loans, each with a distinct maturity date. A $400 million revolving credit facility, which is due for repayment in September 2030, is accompanied by three term loans. Two of these term loans, due in September 2029 and September 2030, were previously sized at $125 million each but have been increased. The other two term loans, due in September 2031 and March 2032, are new facilities.

This refinancing strategy has had a significant impact on the company's debt structure. The weighted average maturity of outstanding debt has increased from 1.6 years at the time of closure to 4.3 years, which is an important change in the company's financial strategy.

The company used the proceeds from this new credit facility to settle its previous borrowings. These included loans from two earlier credit facilities, one of which was for $300 million and had a maturity date in January 2027, and two others for $100 million each, due in January 2028.

The interest on these borrowed funds is calculated at the SOFR (Secured Overnight Financing Rate) plus a spread that varies based on the company's leverage ratio. The company utilized SOFR swaps to convert the term loans into fixed-rate loans. This resulted in the initial fixed interest rates for the term loans being set at 5.3% for the 2029 loan, 4.9% for the 2030 loan, 4.8% for the 2031 loan, and 3.4% for the 2032 loan.

A syndicate of banks led the process of providing this credit facility. KeyBank National Association acted as the administrative agent for this syndicate, with co-syndication agents including prominent banks such as Bank of America, The Huntington National Bank, PNC Bank, Regions Bank, Truist Bank, and Wells Fargo Bank.

CTO Realty Growth is a company that specializes in the ownership and operation of open-air shopping centers. These centers are primarily located in the Southeast and Southwest regions of the United States.