Business
Jernigan Capital Upsizes Credit Facility to $375 Million with Reduced Pricing, Extended Maturity and Additional Banks; Provides Liquidity and Business Updates
MEMPHIS, Tenn.--(BUSINESS WIRE)-- Jernigan Capital, Inc. (NYSE: JCAP) (the “Company”) announced that on March 26, 2020, it entered into an amended and
About this update from Jefferson Capital, Inc.
[{"type":"text","content":" MEMPHIS, Tenn.--(BUSINESS WIRE)--\nJernigan Capital, Inc. (NYSE: JCAP) (the “Company”) announced that on March 26, 2020, it entered into an amended and restated senior secured revolving credit facility of up to $375 million with a syndicate of banks led by KeyBank National Association and BMO Harris Bank N.A. The $375 million credit facility, which has an accordion feature permitting expansion up to $750 million, subject to certain conditions including obtaining additional commitments from lenders, has a three-year term that expires March 24, 2023 and two one-year extension options.\n\n\nThe primary highlights of the new facility include:\n\n\n\nUpsized to $375 million from $235 million\n\n\nCredit spreads lowered by 15-25 basis points with no LIBOR floor\n\n\nMaturity extended by approximately 1 ¼ years to March 24, 2023, plus extensions\n\n\nFinancial covenant package updated to support the Company’s growth plan\n\n\nAdded three new banks including Truist Bank, Synovus Bank and IberiaBank\n\n\n\nBorrowings under the credit facility are secured by three separate pools of collateral: one consisting of the Company’s development property investments, one consisting of non-stabilized self-storage properties wholly-owned by the Company, and the last consisting of stabilized self-storage properties wholly-owned by the Company. Advances under the credit agreement bear interest at rates between 210 and 300 basis points over 30-day LIBOR. These spreads are 15 to 25 basis points lower than the spreads under the previous credit facility, which were 225 and 325 basis points, respectively. There is no LIBOR floor.\n\n\n“This new facility marks another major milestone for JCAP,” said John Good, Chairman and Chief Executive Officer of the Company. “With the amendment and restatement of our credit facility, we have significantly increased our access to and lowered the cost of debt capital at a time of unprecedented market volatility and economic uncertainty. Our existing banking syndicate, plus the three new banks who are entering the line with this upsizing, by their commitments have expressed confidence in our ability to continue the solid execution of our long-standing plan to build a best-of-class self-storage portfolio in some of the top markets in the United States.”\n\n\nKeyBanc Capital Markets, Inc. and BMO Capital Markets Corp. acted...