Equity LifeStyle Properties Inc. (ELS) Wednesday (June 8) announced that it has entered into a commitment for a $200 million senior unsecured term loan facility.
According to a news release, the term loan matures in six years and has a one-year extension option. The interest rate on the is at LIBOR plus 1.85% to 2.80% per annum. The spread over LIBOR is variable based on leverage throughout the loan term.
In connection with the term loan, the Chicago-based company also entered into a three-year LIBOR Swap Agreement allowing it to trade its variable interest rate for a fixed interest rate on the term loan. The term loan is expected to close, and the swap will become effective, on July 1.
The proceeds from the term loan are expected to be used to partially fund the previously announced pending acquisition of a portfolio of 76 manufactured home communities containing 31,167 sites on approximately 6,500 acres located in 16 states (primarily located in Florida and the northeastern region of the United States) and certain manufactured homes and loans secured by manufactured homes located at the Hometown Properties for a stated purchase price of $1.43 billion.
ELS anticipates closing on the acquisition of 39 of the properties on July 1 with a stated purchase price of approximately $519.0 million.
ELS owns or has an interest in 307 quality properties in 27 states and British Columbia consisting of 111,008 sites. The company is a self-administered, self-managed, real estate investment trust (REIT) with headquarters in Chicago.