Secures New $2.5 Billion Line of Credit and $750 Million Term Loan
Terminates $2.5 Billion Bridge Loan Facility
CHICAGO--(BUSINESS WIRE)--
Equity Residential (NYSE: EQR) today announced that the company has
entered into a new unsecured revolving credit facility and term loan as
it positions itself for the closing of the Archstone acquisition in the
first quarter of 2013.
“We are very pleased to put these new facilities in place and are
appreciative of the support that we have received from a syndicate of 25
financial institutions for both the revolver and the term loan,” said
Mark J. Parrell, Equity Residential’s Executive Vice President and CFO.
“Between these loans and the proceeds from the more than $3.0 billion of
non-core assets we have recently sold or have under contract, we have
exceeded our funding objectives for the Archstone closing.”
On January 11, 2013, the company entered into a new $2.5 billion
unsecured revolving credit agreement with a group of 25 financial
institutions. The new facility matures in April 2018 and has an interest
rate of LIBOR plus a spread and an annual facility fee that are
dependent on the company’s then current credit rating. At the company’s
current rating, the interest rate spread is 1.05% and the annual
facility fee is 15 basis points. This facility replaced the company’s
existing $1.75 billion facility which was scheduled to mature in July
2014.
Also on January 11, 2013, the company entered into a new senior
unsecured $750 million delayed draw term loan facility with an interest
rate of LIBOR plus a spread which is dependent on the company’s then
current credit rating. At the company’s current rating, the interest
rate spread is 1.20%. The maturity date of the facility is January 11,
2015, subject to a one year extension option exercisable by the company.
The facility is currently undrawn and is available in one draw made on
or before July 11, 2013 and may be used to fund the Archstone
acquisition or for other corporate purposes.
With the completion of these financing activities, the company
terminated the $2.5 billion bridge loan facility commitment that it
obtained contemporaneously with entering into the Archstone acquisition
contract in November 2012.
Equity Residential is an S&P 500 company focused on the acquisition,
development and management of high quality apartment properties in top
U.S. growth markets. Equity Residential owns or has investments in 403
properties located in 13 states and the District of Columbia, consisting
of 115,370 apartment units. For more information on Equity Residential,
please visit our website at www.equityapartments.com.
Forward-Looking Statements
In addition to historical information, this press release contains
forward-looking statements and information within the meaning of the
federal securities laws. These statements are based on current
expectations, estimates, projections and assumptions made by management.
While Equity Residential’s management believes the assumptions
underlying its forward-looking statements are reasonable, such
information is inherently subject to uncertainties and may involve
certain risks, including, without limitation, changes in general market
conditions, including the rate of job growth and cost of labor and
construction material, the level of new multifamily construction and
development, competition and local government regulation. Other risks
and uncertainties are described under the heading “Risk Factors” in our
Annual Report on Form 10-K and subsequent periodic reports filed with
the Securities and Exchange Commission (SEC) and available on our
website, www.equityapartments.com.
Many of these uncertainties and risks are difficult to predict and
beyond management’s control. Forward-looking statements are not
guarantees of future performance, results or events. Equity Residential
assumes no obligation to update or supplement forward-looking statements
that become untrue because of subsequent events.
Equity Residential
Marty McKenna, (312) 928-1901
Source: Equity Residential