NationBank Corp.'s Texas unit has arranged a $200 million unsecured revolving line of credit for Franchise Finance Corporation of America.
The line of credit replaces a partially secured acquisition loan facility with Nomura Asset Capital Corp. that was scheduled to expire in July 1996. The new agreement is for a two-year period, with the possibility for three annual extensions. Proceeds from the new line of credit will be used for acquisitions and general corporate purposes.
The rate and fees on the NationsBank line of credit are based on the borrower's investment-grade senior debt ratings obtained in November from Moody's Investors Services, Standard & Poor's, and Duff & Phelps Credit Rating Co.
The rate is 150 basis points over the 30-day London interbank offered rate - or 25 basis points less than the Nomura facility's. The commitment fees and unused line fees are also less than those on the Nomura facility.
Franchise Finance is the nation's largest independent finance company for restaurant chain real estate.