PREIT Amends and Extends its $490 Million Credit Facility, Refinances Two Properties

Pennsylvania Real Estate Investment Trust PEI announced today that it has amended and extended its 2010 Credit Facility with its bank group, led by Wells Fargo Bank, and refinanced the mortgage loans on two power center properties. The amendment increases the revolving portion of the Facility by $100 million, reduces the current applicable interest rate by 90 basis points, extends the term of the Facility by one year to March 10, 2014 and eliminates the mandatory Facility pay-down requirements from capital events, among other changes. The amendment also modifies some of the financial covenants under the Facility, reducing the maximum permitted leverage and increasing the minimum corporate debt yield. Specifically, the revolving portion of the Facility is now $250 million. As of June 30, 2011, the outstanding balance of the revolving portion of the Facility was $70 million. The amount outstanding under the term loan portion of the Facility has been reduced by $100 million to $240 million. The interest rate range under the Facility was lowered to between 2.75% and 4.00% per annum over LIBOR, depending on the Company's leverage. Previously, the interest rate range was between 4.00% and 4.90% per annum over LIBOR. Initially, the new rate in effect is 4.00% per annum over LIBOR.