After providing agency and balance sheet financing to Apartment Investment and Management Company (AIMCO) since 2004, PNC Real Estate was awarded Joint Lead Arranger role on the client’s $600 million REIT Revolver recast.
AIMCO is one of the largest owners and operators of apartments in the country with a $7.1 billion market capitalization.
PNC Real Estate’s Multifamily group has provided agency financing for AIMCO since 1999. PNC joined AIMCO’s REIT Revolver as a participant in 2011.
Knowing AIMCO was planning to recast their facility, PNC began initial discussions with them in early 2016. AIMCO was interested in extending the maturity date, improving several financial covenants and reducing the pricing from the existing credit facility. AIMCO also recognized PNC’s track record as a steady resource throughout market ups and downs, even as other banks were struggling.
In November 2016, AIMCO offered PNC the Joint Lead Arranger role but needed PNC to approve $125 million in a short period of time. Having already anticipated a potential request, PNC was able to underwrite and approve it in just 11 business days. A thorough understanding of the client based on an extensive history as well as hard work from the entire team delivered the deal on time.
“We were pleased with the high level of interest in the new credit facility,” said Patti K. Fielding, executive vice president and treasurer at AIMCO. “The new facility provides more favorable pricing, an extended maturity date and more flexible covenants. PNC’s excellent responsiveness and history with AIMCO were important elements in awarding them the Joint Lead Arranger role.”
Date: December 2016
Financing Amount: $600 million; PNC initial commitment: $125 million (PNC final hold: $68 million)
Financing Type: 12-bank syndication with PNC Capital Markets LLC as a Joint Lead Arranger
Scope: AIMCO is a multifamily REIT with 189 properties in 22 states and Washington, D.C.
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