MHProNews has learned that Sun Communities Inc. (SUI) announced today that its Board of Directors declared a quarterly dividend of $0.63 per share for the third quarter of 2011. According to Karen J. Dearing, Chief Financial Officer, the dividend is payable October 21, 2011 to shareholders of record October 13, 2011. Sun Communities has 21.7 million shares outstanding. Sun is a Real Estate Investment Trust (REIT) that currently owns and operates a portfolio of 155 manufactured home and RV communities comprising approximately 53,600 developed sites. In other corporate news, Sun also announced today it has entered into a senior secured revolving credit facility in the amount of $130.0 million (the “Facility”) with the Company’s bank group led by Bank of America, N.A. (Administrative Agent) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (Sole Lead Arranger and Sole Book Manager). The Facility replaces the Company’s $115.0 Million revolving line of credit scheduled to mature on October 1, 2011. The Facility is secured primarily by a first priority lien on all of the Company’s equity interests in each entity that owns all or a portion of the properties constituting the borrowing base. The Facility has a built in accordion feature allowing up to $20.0 million in additional borrowings and a year extension option, both at the Company’s discretion. The Facility will bear interest at a floating rate based on Eurodollar plus a margin determined on the Company’s leverage ratio calculated in accordance with the Facility, which ranges from 2.25% to 2.95%. Based on the Company’s current leverage ratio, the margin will be 2.75%. Other banks participating in the transaction include Fifth Third Bank (Syndication Agent), PNC Bank, The PrivateBank, Citibank, N.A. and Comerica Bank. At the time of the closing, there were $95.0 million of borrowings under the Facility, including letters of credit issued in the normal course of the Company’s business. Sun Communities Inc. stock (SUI) is tracked by the market report in our Daily Business News.
(Graphic credit: Sun Corporate Logo)