SUN COMMUNITIES, INC. (NYSE:SUI) Files An 8-K Entry into a Material Definitive Agreement
Item1.01
| Entry into a Material Definitive Agreement. |
On April25, 2017, Sun Communities Operating Limited Partnership
(SCOLP), as borrower, and Sun Communities, Inc. (the Company),
and certain of its subsidiaries, as guarantors, entered into the
Second Amended and Restated Credit Agreement (the Credit
Agreement) with Citibank, N.A. (Citibank), as Administrative
Agent, Swing Line Lender and L/C Issuer, Citigroup Global Markets
Inc., Merrill Lynch, Pierce, Fenner Smith Incorporated and BMO
Capital Markets, as Joint Lead Arrangers, and Citigroup Global
Markets Inc. and Merrill Lynch, Pierce, Fenner Smith Incorporated
as Joint Bookrunners, and Bank of America, N.A. and Bank of
Montreal, as Co-Syndication Agents and Fifth Third Bank, an Ohio
Banking Corporation, Regions Bank and RBC Capital Markets as
Co-Documentation Agents and the other lenders, PNC Bank, National
Association, U.S. Bank National Association, Credit Suisse,
Associated Bank, N.A. and Flagstar Bank, FSB.
to the Credit Agreement, SCOLP may borrow up to $650.0million
under a senior credit facility, comprised of a $550.0million
revolving loan and $100.0million term loan (the Facility). The
Credit Agreement also permits, subject to the satisfaction of
certain conditions, additional commitments from one or more of
the existing lenders or other lenders (with the consent of the
Administrative Agent and the other lenders) in an amount not to
exceed $350.0million. If additional borrowings are made to any
such additional commitments, the aggregate borrowing limit under
the Facility may be increased up to $1.0billion. The Facility has
a four-year term ending April25, 2021, and at SCOLPs option the
maturity date may be extended for two additional six-month periods, subject to
the satisfaction of certain conditions. The Facility bears
interest at a floating rate based on the Eurodollar rate plus a
margin that is determined based on the Companys leverage ratio
calculated in accordance with the Credit Agreement, which can
range from 1.35% to 2.20% for the revolving loan and 1.30% to
2.15% for the term loan. Based on the Companys current leverage
ratio, the current margin is 1.35% and 1.30% on the revolving and
term loans, respectively. At the time of the closing, there were
$220.8million in borrowings under the Facility.The Facility
replaces the Companys $450.0million credit facility, which was
scheduled to mature on August19, 2019.
The Facility is
full recourse to SCOLP, the Company and each of the subsidiary
guarantors. At the lenders option, the Facility will become
immediately due and payable upon an event of default under the
Credit Agreement.
The foregoing
description does not purport to be complete and is qualified in
its entirety by reference to the Credit Agreement which is filed
as Exhibit 10.1 to this Form 8-K and incorporated by reference
herein.
| Item2.03 |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information
contained in and incorporated into Item 1.01 above is hereby
incorporated in this Item 2.03 by reference.
| Item9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits: |
|
Exhibit No. |
Description |
|
| 10.1* |
Second Amended and Restated Credit Agreement, dated April25, 2017, among Sun Communities Operating Limited Partnership, as Borrower, Citibank, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner Smith Incorporated, and BMO Capital Markets, as Joint Lead Arrangers, Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner Smith Incorporated, as Joint Bookrunners, Bank of America, N.A. and Bank of Montreal, as Co-Syndication Agents, and Fifth Third Bank, an Ohio Banking Corporation Regions Bank and RBC Capital Markets, as Co-Documentation Agents |
| * | To be filed by amendment. |
About SUN COMMUNITIES, INC. (NYSE:SUI)
Sun Communities, Inc. (SHS) is a self-administered and self-managed real estate investment trust (REIT). The Company operates in two segments: Real Property Operations, and Home Sales and Rentals. The Real Property Operations segment owns, operates and develops manufactured housing (MH) and recreational vehicle (RV) throughout the United States and is in the business of acquiring, operating and expanding MH and RV communities. Real Property Operations include several home options of various sizes and designs and consist of MH communities and RV communities. The Home Sales and Rentals segment offers manufactured home sales and leasing services to tenants and prospective tenants of its communities. It is engaged in the marketing, selling and leasing of new and pre-owned homes to residents in its communities. It has regional property management offices located in Austin, Texas; Dayton, Ohio; Grand Rapids, Michigan; Traverse City, Michigan; Ft. Myers, Florida, and Orlando, Florida. SUN COMMUNITIES, INC. (NYSE:SUI) Recent Trading Information
SUN COMMUNITIES, INC. (NYSE:SUI) closed its last trading session down -1.46 at 83.20 with 399,331 shares trading hands.
