SmartStop Self Storage REIT, Inc. - 10-Q filing on 2017-11-13

An ABR Borrowing bears interest at the lesser of (x) the Alternate Base Rate (as defined in the $11M Subordinate Loan Agreement) plus the Applicable Rate, or (y) the Maximum Rate (as defined in the $11M Subordinate Loan Agreement). A Eurodollar Borrowing bears interest at the lesser of (a) the Adjusted LIBO Rate (as defined in the $11M Subordinate Loan Agreement) for the Interest Period in effect plus the Applicable Rate, or (b) the Maximum Rate (as defined in the $11M Subordinate Loan Agreement). The Applicable Rate means 375 basis points for any Eurodollar Borrowing and 275 basis points for any ABR Borrowing.

Outstanding principal amount

$ 11,000,000

Number of properties encumbered | Property

Fixed Rate Secured Debt | $11M KeyBank Subordinate Loan | ABR Loan

Debt Instrument [Line Items]

Line of credit facility, applicable interest rate

2.75%

Fixed Rate Secured Debt | $11M KeyBank Subordinate Loan | Eurodollar Loan

Debt Instrument [Line Items]

Line of credit facility, applicable interest rate

3.75%

Promissory Notes Payable One | KeyBank CMBS Loan

Debt Instrument [Line Items]

Outstanding principal amount

$ 70,000,000

Debt Instrument, Periodic Payment

Monthly payments due under the Promissory Notes are interest-only for the first five years and payments reflecting a 30-year amortization schedule begin thereafter.

Promissory Notes Payable Two | KeyBank CMBS Loan

Debt Instrument [Line Items]

Outstanding principal amount

$ 25,000,000

Debt Instrument, Periodic Payment

Monthly payments due under the Promissory Notes are interest-only for the first five years and payments reflecting a 30-year amortization schedule begin thereafter.

KeyBank Credit Facility

Debt Instrument [Line Items]

Maximum borrowings under credit facility

$ 71,300,000

Amended KeyBank Credit Facility

Debt Instrument [Line Items]

Maximum borrowings under credit facility

$ 145,000,000

105,000,000

Potential maximum borrowings under credit facility

500,000,000

Increment in borrowing capacity

$ 10,000,000

Additional borrowing capacity

$ 40,000,000

Number of properties removed from encumbrance | Property

Outstanding balance on credit facility

$ 56,000,000

Loans outstanding

^[4]

$ 12,300,000

$ 89,382,500

Line of credit facility, initial term

3 years

Line of credit facility, maturity date

Dec. 22, 2018

Line of credit facility, term of extension options

1 year

Line of credit facility, number of extension options | Extension

Line of credit facility, description

The Amended KeyBank Credit Facility is a revolving loan with an initial term of three years, maturing on December 22, 2018, with two one-year extension options subject to certain conditions outlined further in the credit agreement for the Amended KeyBank Credit Facility (the “Amended Credit Agreement”). Payments due pursuant to the Amended KeyBank Credit Facility are interest-only for the first 36 months and a 30-year amortization schedule thereafter.

Line of credit facility amortization schedule

30 years

Line of credit facility interest-only period

36 months

Line of credit facility, interest rate description

The Eurodollar Loans bear interest at the lesser of (a) the Adjusted LIBO Rate (as defined in the Amended Credit Agreement) for the Interest Period in effect plus the Applicable Rate, or (b) the Maximum Rate (as defined in the Amended Credit Agreement). The Applicable Rate corresponds to our total leverage, as specified in the Amended Credit Agreement. For any ABR Loans, the Applicable Rate is 125 basis points if our total leverage is less than 50%, and 150 basis points if our leverage is greater than 50%. For any Eurodollar Loan, the Applicable Rate is 225 basis points if our total leverage is less than 50% and 250 basis points if our total leverage is greater than 50%.

Percent of collateral properties used for aggregate borrowing capacity

60.00%

Minimum debt service coverage ratio

1.35%

Total leverage ratio

60.00%

Percentage of net proceeds of equity received

80.00%

Minimum interest service coverage ratio

1.85%

Minimum fixed charge ratio

1.60%

Threshold percentage for ratio of variable rate indebtedness to total indebtedness.

30.00%

Percentage of required loan to value ratio

60.00%

Maturity date of loan

^[4]

Dec. 22, 2018

Number of properties encumbered | Property

Amended KeyBank Credit Facility | Fixed Rate Secured Debt | Loans Payable [Member]

Debt Instrument [Line Items]

Outstanding balance on credit facility

$ 89,000,000

Amended KeyBank Credit Facility | Loans with Total Leverage Less Than 50% | ABR Loan

Debt Instrument [Line Items]

Line of credit facility, applicable interest rate

1.25%

Amended KeyBank Credit Facility | Loans with Total Leverage Less Than 50% | Eurodollar Loan

Debt Instrument [Line Items]

Line of credit facility, applicable interest rate

2.25%

Amended KeyBank Credit Facility | Loans with Total Leverage Greater Than 50% | ABR Loan

Debt Instrument [Line Items]

Line of credit facility, applicable interest rate

1.50%

Amended KeyBank Credit Facility | Loans with Total Leverage Greater Than 50% | Eurodollar Loan

Debt Instrument [Line Items]

Line of credit facility, applicable interest rate

2.50%

[1]	This loan encumbers the equity interest in the entities that own the 34 properties (the 29 properties encumbered by the KeyBank CMBS Loan and the five properties encumbered by the KeyBank Florida CMBS Loan), and is subordinate to the existing KeyBank CMBS Loan and KeyBank Florida CMBS Loan.
[2]	This loan encumbers five properties (Pompano Beach, Lake Worth, Jupiter, Royal Palm Beach, and Delray). The separate assets of these encumbered properties are not available to pay our other debts.
[3]	This loan encumbers 29 properties (Whittier, La Verne, Santa Ana, Upland, La Habra, Monterey Park, Huntington Beach, Chico, Lancaster I, Riverside, Fairfield, Lompoc, Santa Rosa, Federal Heights, Aurora, Littleton, Bloomingdale, Crestwood, Forestville, Warren I, Sterling Heights, Troy, Warren II, Beverly, Everett, Foley, Tampa, Boynton Beach, and Lancaster II). The separate assets of these encumbered properties are not available to pay our other debts.
[4]	As of September 30, 2017, this facility encumbers 21 properties (Xenia, Sidney, Troy, Greenville, Washington Court House, Richmond, Connersville, Vallejo, Port St. Lucie I, Sacramento, Sonoma, Las Vegas I, Las Vegas II, Las Vegas III, Baltimore, Aurora II, Plantation, Wellington, Naples, Port St. Lucie II, and Doral).