Gazit America Enters a Bridge Credit Facility

Gazit America Inc. (Gazit America) announced that it has entered into an unsecured revolving credit facility agreement ("Bridge Facility") with Gazit Maple Inc., the Company's largest shareholder. Up to $40 million is available to be drawn by the Company under the Bridge Facility and amounts drawn are expected to be used to fund pending and proposed acquisitions. Amounts outstanding under the Bridge Facility bear interest from time to time at the BA rate plus 3.3% and the Bridge Facility matures on the earlier of (i) July 18, 2011 and (ii) the first banking day immediately following the date the Company completes its previously announced rights offering.

The Company also announced that it has entered into binding agreements to acquire three medical office properties and re-entered into a binding agreement to acquire a redevelopment property in separate transactions for an aggregate purchase price of approximately $65 million (approximately $34 million net of new or outstanding debt on the properties acquired) comprising approximately 308,000 square feet. The closing of each acquisition is not dependent on the closing of any other. Each acquisition, however, is subject to the satisfaction of customary closing conditions. Closing of these transactions is expected to occur between January and March, 2011. The Company is also pursuing other acquisitions for which it has not yet entered into binding agreements. In order to fund these pending and proposed acquisitions, the Company expects to draw funds under the Bridge Facility. Accordingly, the Company may draw up to $40 million in order to fund these acquisitions. 

 

on January 17, 2011