OREANDA-NEWS. PREIT (NYSE: PEI) has entered into a modification and extension of its Term Loan ("2015 7-Year Term Loan") offering increased flexibility and reduced rates to help fund the Company's growth objectives.

The Amendment increased potential borrowing under the Agreement from $100.0 million to $250.0 million, and expanded the accordion feature of the Seven-Year Term Loan Agreement from up to $200.0 million to up to $400.0 million.

Key points:

Interest rates were lowered at all leverage levels in the pricing grid and the maturity date was extended by approximately one year, from January 7, 2021 to December 29, 2021.

The rate in effect at the closing of the Amendment was LIBOR plus 160 basis points, a decrease of 55 basis points from the prior agreement.

As of June 30, 2016, there was $100.0 million outstanding under the Agreement.

The Amendment allows for deferred draws in up to four increments over the first year of the loan with respect to the additional $150.0 million available, with any commitments not drawn at the first year anniversary of the Amendment to be terminated.

"We are happy to take advantage of favorable conditions in the debt market and our improved portfolio in executing a transaction that will reduce our interest expense, extend our debt maturities and provide additional capacity and flexibility to meet our near term capital requirements.," said Joseph F. Coradino, CEO of PREIT. "These transactions enable us to execute on the high quality, value-creating redevelopment opportunities in our pipeline, allowing us to naturally de-lever."