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Equity Residential
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.
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