Monday, November 14, 2011

Tanger Outlets Closes on Recast of Unsecured Revolving Lines of Credit

GREENSBORO, N.C., Nov. 8, 2011 (GLOBE NEWSWIRE) -- Tanger Factory Outlet Centers, Inc. (NYSE:SKT), today announced its operating partnership, Tanger Properties Limited Partnership, has amended its $400 million in unsecured revolving lines of credit, increasing total capacity to $520 million and extending maturity through November 2015.

"This recast not only extends maturity of our lines by two years, it brings our revolvers in line with current market conditions, reducing our LIBOR spread and facility fee by a combined 80 basis points annually," commented Steven B. Tanger, President and Chief Executive Officer. "The expansion of our lines increases capacity by 30%, affording us maximum flexibility in refinancing our $150 million bridge loan prior to its maturity. Together with the free cash flow generated by our operations, this additional capacity leaves us well positioned to fuel our pipeline for future growth," he added.

The maturity date of the amended lines is November 10, 2015, and the Company has an option to extend them for one year to November 10, 2016. At closing the facilities bear interest at a spread over LIBOR of 125 basis points plus a 25 basis point annual facility fee, based on the operating partnership's current long-term debt rating. Previously, the spread was 190 basis points and the annual facility fee was 40 basis points.

The facilities include a $20 million bilateral liquidity facility for which Bank of America, N.A. is the sole Lender, as well as a $500 million syndicated line for which Bank of America Merrill Lynch, Wells Fargo Securities, LLC, and U.S. Bank, N.A. are Joint Bookrunners and Joint Lead Arrangers. The syndicated line may be increased to $750 million through an accordion feature in certain circumstances. In addition, the syndicated facility now includes a money market competitive bid feature that will allow Tanger to benefit from any further compression in market spreads, as well as a $100 million multi-currency sublimit that may be used for Canadian dollar borrowings. Participating banks are as follows:

Name of Institution
Facility Title
Bank of America, N.A. Administrative Agent
Wells Fargo Bank, N.A. Syndication Agent
U.S. Bank, N.A. Syndication Agent
SunTrust Bank Documentation Agent
Branch Banking and Trust Company Documentation Agent
PNC Bank, N.A. Lender
Regions Bank Lender
Royal Bank of Canada Lender
The Bank of Nova Scotia Lender

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