CorEnergy Infrastructure Trust, Inc. announced the closing of a new $30 million senior secured revolving credit facility with Regions Bank. The new four-year credit facility replaces the company’s existing $20 million revolving line of credit with KeyBank that was scheduled to mature in May 2016.
The credit facility has a maturity date of September 26, 2018. For the first six months, borrowings under the credit facility will bear interest on the outstanding principal amount at an initial rate of LIBOR plus 4.00%. After the first six months, a pricing grid will be used to determine the interest rate. Beginning March 26, 2015, the interest rate as determined by the pricing grid is expected to be LIBOR plus 3.25% - 4.00%. The applicable spread for each interest rate is based on the Company’s total recourse leverage ratio.
“This credit line enhances CorEnergy’s financial flexibility on favorable rates and terms,” said David Schulte, Chief Executive Officer of CorEnergy. Management anticipates using the credit facility to fund property acquisitions, capital improvements or for other permitted corporate purposes. The Portland Terminal Facility is expected to qualify as eligible collateral under the facility.
The credit facility was arranged by Regions Bank, which is acting as both administrative agent and initial lender, and Regions Bank Capital Markets as Lead Arranger and Sole Bookrunner.
CorEnergy Infrastructure Trust, Inc. primarily owns midstream and downstream U.S. energy infrastructure assets subject to long-term triple net participating leases with energy companies. These assets include pipelines, storage tanks, transmission lines and gathering systems. The company’s principal objective is to provide stockholders with an attractive risk-adjusted total return, with an emphasis on distributions and long-term distribution growth (reported to our investors on Form 1099). CorEnergy is managed by Corridor InfraTrust Management, LLC, a real property asset manager focused on U.S. energy infrastructure real assets, and is an affiliate of Tortoise Capital Advisors, L.L.C., an investment manager specializing in listed energy investments, with approximately $19.2 billion of assets under management in NYSE-listed closed-end investment companies, open-end funds and other accounts as of August 31, 2014.