Equity Residential Secures New $2.5B Credit Line, $750M Term Loan

Equity Residential (NYSE: EQR) today announced that the company has enteredinto a new unsecured revolving credit facility and term loan as it positionsitself for the closing of the Archstone acquisition in the first quarter of2013.“We are very pleased to put these new facilities in place and are appreciativeof the support that we have received from a syndicate of 25 financialinstitutions for both the revolver and the term loan,” said Mark J. Parrell,Equity Residential's Executive Vice President and CFO. “Between these loansand the proceeds from the more than $3.0 billion of non-core assets we haverecently sold or have under contract, we have exceeded our funding objectivesfor the Archstone closing.”On January 11, 2013, the company entered into a new $2.5 billion unsecuredrevolving credit agreement with a group of 25 financial institutions. The newfacility matures in April 2018 and has an interest rate of LIBOR plus a spreadand an annual facility fee that are dependent on the company's then currentcredit rating. At the company's current rating, the interest rate spread is1.05% and the annual facility fee is 15 basis points. This facility replacedthe company's existing $1.75 billion facility which was scheduled to mature inJuly 2014.Also on January 11, 2013, the company entered into a new senior unsecured $750million delayed draw term loan facility with an interest rate of LIBOR plus aspread which is dependent on the company's then current credit rating. At thecompany's current rating, the interest rate spread is 1.20%. The maturity dateof the facility is January 11, 2015, subject to a one year extension optionexercisable by the company. The facility is currently undrawn and is availablein one draw made on or before July 11, 2013 and may be used to fund theArchstone 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 obtainedcontemporaneously with entering into the Archstone acquisition contract inNovember 2012.