Campus Crest Communities, Inc. (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
“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.”(1) Accordion and extension option subject to certain conditions About Campus Crest Communities, Inc. Campus Crest Communities, Inc. is a leading developer, builder, owner and manager of high-quality, residence life focused student housing properties located close to college campuses in targeted U.S. markets. The Company is a self-managed, self-administered and vertically-integrated real estate investment trust which operates all of its properties under The Grove® brand. The Company owns interests in 39 operating student housing properties containing approximately 7,670 apartment units and 20,884 beds. The Company has commenced construction of six projects containing approximately 1,314 units and 3,564 beds for delivery in the third quarter of 2013. Since its inception, the Company has focused on customer service, privacy, on-site amenities and its proprietary residence life programs to provide college students across the United States with a higher quality of living. Additional information can be found on the Company's website at http://www.campuscrest.com. Forward-Looking Statements This press release and other statements and information publicly disseminated by the Company contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts" or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company's control that may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, except as otherwise required by federal securities laws, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the risk factors discussed in the Company's most recent Annual Report on Form 10-K.
Source: Campus Crest Communities, Inc.