Getty Realty Corp. (NYSE:GTY) (“Getty” or the “Company”) today announced that on March 9, 2012 it amended both its $175.0 million revolving credit facility with J.P. Morgan Chase Bank, N.A., as Administrative Agent (the “Credit Agreement”) and its $25.0 million term loan with TD Bank, N.A. (the “Term Loan”) and extended the maturity of both loans to March 2013.
David Driscoll stated, “We are quite pleased that the Company secured an extension of its Credit Agreement and Term Loan with its banking group. The extension provides Getty with financial flexibility as it begins to execute on its strategy of re-positioning the Getty Marketing assets to stabilize cash flow. Given the tumultuous events the past six months, we view the securing of these agreements as a vote of confidence from our lenders about underlying value of our portfolio and our management strategy.”
The amendment of the Credit Agreement provides for first mortgage security on some of the Company’s properties and is priced at an interest margin of 300bps over LIBOR. At closing the borrowings under the Credit Agreement and Term Loan aggregated approximately $175 million.
The Credit Agreement and Term Loan contain amended terms and conditions, including periodic financial reporting, financial covenants requiring the maintenance of minimum cash balances as well as other covenants which may limit Getty's ability to incur debt or pay dividends and restrictions on Getty's use of proceeds from the issuance of debt or equity and the sale of properties. The Credit Agreement and Term Loan also contain customary events of default, such as change of control, failure to maintain REIT status or the occurrence of an event that may have a material adverse effect on Getty's business, assets, prospects or condition.
Getty Realty Corp. is the leading publicly-traded real estate investment trust in the United States specializing in ownership and leasing of convenience store/gas station properties and petroleum distribution terminals. The Company owns and leases approximately 1,149 properties nationwide.