Commenting on the financing transaction, Willing Biddle, UBP’s President and Chief Operating Officer said, “We are pleased to announce this new unsecured revolving credit facility that will continue to provide UBP with the liquidity it needs to be efficient in closing acquisition opportunities as they present themselves in our marketplace. We are proud to continue our over twenty-five year banking relationship with The Bank of New York Mellon and are excited about our ongoing relationship with Wells Fargo, one of the nation’s leading financial institutions with a particular expertise in real estate. In addition, we are extremely pleased to begin what we hope will be long relationships with the Bank of Montreal and Regions Bank.”Urstadt Biddle Properties Inc. is a self-administered equity real estate investment trust which owns or has equity interests in 54 properties containing approximately 4.9 million square feet of space. Listed on the New York Stock Exchange since 1970, it provides investors with a means of participating in ownership of income-producing properties. It has paid 171 consecutive quarters of uninterrupted dividends to its shareholders since its inception and raised its dividend to its shareholders for the last 18 consecutive years. Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among other things, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.
Urstadt Biddle Properties Inc. (“UBP”) (NYSE: UBA and UBP) announced that it has entered into a new $80 Million Unsecured Revolving Credit Agreement with a syndication of four banks led by The Bank of New York Mellon. The syndication also includes Wells Fargo Bank N.A., Bank of Montreal and Regions Bank. The new agreement will replace the existing $50 million unsecured revolving credit agreement with BNY Mellon and Wells Fargo Bank N.A. The facility gives UBP the option, under certain conditions, to increase the borrowing capacity up to $125 million. The maturity date of the facility is September 21, 2016 with a one year extension at the Company’s option. Borrowings under the facility can be used for, among other things, acquisitions, working capital, capital expenditures, repayment of other indebtedness and the issuance of letters of credit (up to $10 million). Borrowings will bear interest at UBP’s option of LIBOR plus 1.5% to 2.0% based on the Company’s consolidated level of indebtedness or The Bank of New York Mellon’s prime lending rate plus 0.50% to 1.0%. UBP will pay an annual fee on the unused commitment amount of up to 0.35% based on outstanding borrowings during the year. The facility contains certain financial and other covenants typical for this type of facility. UBP’s ability to borrow under the facility is subject to its compliance with the covenants and other restrictions on an ongoing basis. The principal financial covenants limit the Company’s level of secured and unsecured indebtedness and additionally require the Company to maintain certain debt coverage ratios. In conjunction with the closing of its new $80 million unsecured revolving credit agreement, the Company terminated its $30 million secured credit agreement with BNY Mellon. The $30 million secured line of credit was secured by two of the Company’s properties, Danbury Square in Danbury, CT and Valley Ridge in Wayne, NJ. These two assets will now be available to mortgage if the Company so chooses.