Consolidated-Tomoka Land Co. (NYSEMKT:CTO) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k
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Consolidated-Tomoka Land Co. (NYSEMKT:CTO) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement

On September 7, 2017, Consolidated-Tomoka Land Co., a Florida corporation (the "Company"), and its subsidiaries entered into a Second Amended and Restated Credit Agreement (the “Revolver Amendment”), which supersedes the Company’s existing Amended and Restated Credit Agreement, with Bank of Montreal (“BMO”) and the other lenders thereunder (as amended, the “Credit Facility”), with BMO acting as Administrative Agent. Branch Banking & Trust Company and Wells Fargo Bank N.A. acted as Co-Syndication Agents.

The Revolver Amendment included, but was not limited to, the following enhancements and modifications:

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Increased the lending commitment from $75 million to $100 million, with the ability to increase that commitment up to $150 million versus $125 million previously;

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Enhanced the borrowing base value of the Company’s income properties by applying reduced cap rates on its properties occupied by investment grade tenants and for all other retail and office properties;

·

Reduced the interest rate whereby the low end of the rate range is 30-day LIBOR plus 150 basis points when the Company’s ratio of total debt to total asset value, as defined in the Revolver Amendment, is less than or equal to 45%, and the top end of the rate range is 30-day LIBOR plus 220 basis points when the ratio of total debt to total asset value is above 55% up to the maximum debt to total asset value of 60%. At signing the ratio of total debt to total asset value as calculated under the Revolver Amendment was 45%. Immediately prior to closing the Revolver Amendment the ratio of total debt to total asset value was 52%;

·

Reduced the minimum fixed charge coverage ratio by 25 basis points, from 1.75 times to 1.50 times. At closing of the Revolver Amendment this ratio was approximately 2.17 times; and

·

Extended the initial maturity date three years from August 2018 to September 2021, with a one-year extension option at the Company’s election.

A copy of the press release announcing the Revolver Amendment is furnished as an exhibit to this Form 8-K as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits


CONSOLIDATED TOMOKA LAND CO Exhibit
EX-10.1 2 ex-10d1.htm EX-10.1 cto_Ex10_1 Exhibit 10.1       SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF SEPTEMBER 7,…
To view the full exhibit click here

About Consolidated-Tomoka Land Co. (NYSEMKT:CTO)

Consolidated-Tomoka Land Co. is a real estate operating company. The Company owns and manages over 40 commercial real estate properties in approximately 10 states in the United States. The Company’s segments include Income Properties, Commercial Loan Investments, Real Estate Operations, Golf Operations, and Agriculture and Other. The Company also leases property for over 20 billboards; has agricultural operations that are managed by a third-party, which consists of leasing land for hay and sod production, timber harvesting and hunting leases, and owns and manages subsurface interests. The Company owns approximately 30 single-tenant and over eight multi-tenant properties with approximately 1,700,000 square feet of gross leasable space. It has over four commercial loan investments, including a fixed-rate mezzanine commercial mortgage loan, a fixed-rate first mortgage, a variable-rate B-Note, a variable-rate mezzanine commercial mortgage loan and a variable-rate first mortgage loan.