UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): January 4, 2008
EASTGROUP PROPERTIES, INC.
(Exact Name of Registrant as Specified in its Charter)
Maryland 1-07094 13-2711135
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(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
300 One Jackson Place, 188 East Capitol Street, Jackson, MS 39201
(Address of Principal Executive Offices, including zip code)
(601) 354-3555
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01 Entry into a Material Definitive Agreement.
On January 4, 2008, EastGroup Properties, Inc. (the "Company"), obtained an
unsecured revolving credit facility (the "Facility") with a group of seven banks
which was arranged by PNC Capital Markets LLC. The Facility replaced the
Company's expiring three-year $175,000,000 unsecured revolving credit facility.
PNC Bank is the administrative agent for the Facility, which includes Regions
Bank, SunTrust Bank, U.S. Bank, Wells Fargo Bank, Trustmark National Bank, and
Bank of America.
The Facility provides for a $200,000,000 revolving credit facility maturing on
January 3, 2012, which term may be extended by the Company for one additional
year subject to the Company's satisfaction of certain conditions. Until January
4, 2011, certain or all of the lenders may, upon request by the Company,
increase the revolving credit facility by $100,000,000.
The interest rate on the Facility is based on the LIBOR index and varies
according to debt-to-total asset value ratios, with an annual facility fee of 20
basis points. The Company's current interest rate under the Facility is LIBOR
plus .70%.
The Facility contains customary covenants for facilities of this type, including
restrictions on indebtedness and liens, limitations on mergers and the sale of
assets, and maintaining certain financial ratios. The Facility also provides for
customary events of default, including failure to pay principal, interest or
fees when due, failure to comply with covenants, if any representations or
warranty made by the Company is false in any material respect, default under
certain other indebtedness, certain insolvency or receivership events affecting
the Company and its subsidiaries, the occurrence of certain material judgments,
or a change in control of the Company. The Company expects to use the line of
credit for general corporate purposes.
Some of the lenders or their affiliates from time to time have provided in the
past and may provide in the future commercial lending services to the Company
and its affiliates in the ordinary course of business.
The foregoing summary description of the Facility does not purport to be
complete and is qualified in its entirety by reference to the Second Amended and
Restated Credit Agreement dated January 4, 2008 among EastGroup Properties,
L.P.; EastGroup Properties, Inc.; PNC Bank, National Association, as
Administrative Agent; Regions Bank and SunTrust Bank as Co-Syndication Agents;
Wells Fargo Bank, National Association as Documentation Agent; and PNC Capital
Markets LLC, as Sole Lead Arranger and Sole Bookrunner; and the Lenders
thereunder, which is filed as Exhibit 10.1 hereto and is incorporated herein by
reference.
ITEM 2.03. Creation of a Direct Financial Obligation or an Obligation Under an
Off-Balance Sheet Arrangement
See Item 1.01 above.
ITEM 9.01. Financial Statements and Exhibits
(d) Exhibits.
10.1 Second Amended and Restated Credit Agreement Dated January 4, 2008 among
EastGroup Properties, L.P.; EastGroup Properties, Inc.; PNC Bank, National
Association, as Administrative Agent; Regions Bank and SunTrust Bank as
Co-Syndication Agents; Wells Fargo Bank, National Association as
Documentation Agent; and PNC Capital Markets LLC, as Sole Lead Arranger and
Sole Bookrunner; and the Lenders thereunder.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: January 10, 2008
EASTGROUP PROPERTIES, INC.
By:/s/ N. KEITH MCKEY
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N. Keith McKey
Executive Vice President,
Chief Financial Officer, Treasurer and
Secretary