Westwood Financial, a 50+ year-old leading retail real estate investment firm based in Los Angeles, announced today that it has closed on a $70 million term loan upsize to the firm’s unsecured credit facility. The upsize will enable the firm to significantly progress on its path to becoming an unsecured borrower.
This upsize brings Westwood Financial’s total credit facility commitments to $325 million, which includes a $115 million credit revolver and $210 million in term loans. And the interest rate is floating at SOFR plus 1.60% spread, with the option to swap to fixed-rate at any time. The Company intends to use the net proceeds of the offering for general corporate purposes, including the repayment of upcoming mortgage debt maturities and future acquisitions.
This is the company’s latest upsize. With the $70 million, Westwood Financial raised a total of $325 million over the last five years, starting with $95 million in 2019, $60 million in 2020 and 2021, and $100 million in 2022. Future debt raises are planned as the firm’s secured mortgages mature over the next three years.
Set to celebrate its 55th anniversary in 2025, Westwood Financial owns and manages over 125 properties with a 97% occupancy across the firm’s portfolio, and has a dominant presence in the Sunbelt region.
KeyBanc served as the agent and Capital One as the co-lead for the newly raised debt – which is a 5-year term loan inclusive of two 12-month stated options in 4th and 5th years. And Synovus, a new bank joining the facility, provided a $20 million commitment to the term loan.
KEY QUOTES:
“With this closing, we are pleased to enhance financial flexibility and unlock new pathways for growth across our portfolio. In a time when access to capital resources has become scarce, we have demonstrated a track record of success that has allowed us to deepen relationships with key lenders. The cost savings and operational efficiencies this funding will strengthen our balance sheet and give way to strategic opportunities.”
– Juyuan Wei, Chief Financial Officer for Westwood Financial
“Since our first transaction, Westwood Financial has proven to be an ideal borrower that has leveraged capital for smart, strategic growth. With this financing, we are supporting new avenues for expansion and look forward to continued success for the firm.”
– Andy McKown, Managing Director of KeyBanc Capital Markets Real Estate Syndications
