CTO Realty Growth bolsters balance sheet with $150M term loan

[Wooden blocks with REIT and houses on balance scale, Real Estate Investment Trust comparison, hedge money during inflation concept]
SewcreamStudio

CTO Realty Growth (NYSE:CTO [https://seekingalpha.com/symbol/CTO]) closed on $150M in term loan financing [https://seekingalpha.com/pr/20245238-cto-realty-growth-strengthens-balance-sheet-with-150-million-term-loan-financing], which will provide the cash to retire its $65M term loan early, the company said on Thursday.

The financing consisted of a new $125M term loan due September 2030 and a $25M upsizing of the company's existing term loan due September 2029. Proceeds were used to retire the $65M term loan due March 2026, representing the majority of CTO's 2026 maturities, and to reduce the balance of its revolving credit facility.

Both term loans bear interest at SOFR plus a spread determined by the company's leverage. At closing, CTO Realty (NYSE:CTO [https://seekingalpha.com/symbol/CTO]) applied existing SOFR swap agreements, resulting in an initial fixed interest rate for both the 2030 term loan and 2029 term loan of ~4.2%. In March 2026, when certain applied SOFR swap agreements mature, they'll be replaced by existing forward SOFR swap agreements, with the interest rates for both adjusting to ~4.7%, based on the company's current leverage ratio.

CTO Realty (NYSE:CTO [https://seekingalpha.com/symbol/CTO]) stock edged up 0.1% in after-hours trading.

MORE ON CTO REALTY GROWTH

* CTO Realty: I'm Buying The Dip On This 9% Yield [https://seekingalpha.com/article/4822870-cto-realty-buying-the-dip]
* CTO Realty Growth: The Market Is Missing The Turnaround [https://seekingalpha.com/article/4822715-cto-realty-growth-the-market-is-missing-the-turnaround]
* CTO Realty Growth: Covered 9.3% Dividend Yield And Short-Term Price Dislocation Make This A Buy [https://seekingalpha.com/article/4813184-cto-realty-covered-9-3-percent-dividend-yield-and-short-term-price-dislocation-buy]
* CTO Realty sets new $10M stock buyback plan [https://seekingalpha.com/news/4498288-cto-realty-sets-new-10m-stock-buyback-plan]
* CTO Realty Growth declares $0.38 dividend [https://seekingalpha.com/news/4487199-cto-realty-growth-declares-0_38-dividend]