The BSC Group, a leading commercial real estate financing advisor and self-storage specialist, recently assisted iStorage with a total debt recapitalization, helping the Florida based company replace existing loans with a new $50 million Revolving Credit Facility.
“The combination of low interest rates and tremendous liquidity in the debt market make it an optimal time to help our clients find ways to lower their cost of funds,” said Shawn Hill, a BSC Group Principal. “A revolving facility also streamlines the borrowing process by creating greater flexibility and speed of execution.”
The new credit facility provides the borrower with additional capital to be used for general working capital purposes, as well as the future expansion of the business. The 3-year loan was funded by a national bank and featured a variable rate of 2.25% over LIBOR with no amortization requirements and open prepayment.
According to Chris Harris, iStorage President, “The BSC Group negotiated an ideal structure to replace an existing, inflexible credit line we had with Bank of America. It is rare to find a large bank that truly understands your business needs, willing to structure a credit facility with maximum flexibility and great pricing in order to provide a catalyst for growth. The BSC Group clearly understood our objective and identified the correct lender to make it a reality, and we could not be more pleased with the outcome.”
This transaction included a diverse portfolio of 19 self-storage properties located in seven different states.
