WASHINGTON, Sept. 16, 2015 /PRNewswire/ -- Washington REIT
(Washington Real Estate Investment Trust – NYSE: WRE), a leading
owner of commercial and multifamily properties in the Washington, DC area, has entered into a
$150 million unsecured term loan by
exercising a portion of the accordion feature under its existing
unsecured credit facility. The term loan has a five and a half year
maturity and an interest rate of LIBOR plus 110 basis points, based
on the company's current unsecured debt ratings. Washington REIT
has entered into interest rate swap arrangements to swap the
floating interest rate under the term loan to an all-in fixed
interest rate of 2.72% starting on October
15, 2015 and extending until the maturity of the term loan
on March 15, 2021. Proceeds from the
term loan were used to repay amounts outstanding on the unsecured
credit facility. There is no premium or penalty associated with
full or partial prepayment of the term loan.
"Along with members of our bank group, we have successfully
executed our term loan and arranged to swap the floating interest
rate to a fixed rate. The loan presents an attractive source of
capital that fits well on our debt maturity ladder. In addition,
the terms and size of the loan provide us with greater flexibility
to accelerate legacy asset sales," said Stephen E. Riffee, Executive Vice President and
Chief Financial Officer of Washington REIT.
Wells Fargo Securities, LLC and Capital One, National
Association served as joint lead arrangers and joint bookrunners.
Wells Fargo Bank, National Association served as administrative
agent and Capital One, National Association as syndication agent.
U.S. Bank National Association and SunTrust Bank served as the
documentation agents. Other lenders included Key Bank National
Association, The Bank of New York Mellon, and Branch Banking and
Trust Company.
Washington REIT is a self-administered, self-managed, equity
real estate investment trust investing in income-producing
properties in the greater Washington metro region. Washington REIT owns
a diversified portfolio of 56 properties totaling approximately 7
million square feet of commercial space and 3,537 residential
units, and land held for development. These 56 properties consist
of 25 office properties, 17 retail centers and 14 multifamily
properties. Washington REIT shares are publicly traded on the New
York Stock Exchange (NYSE: WRE).
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements involve known and unknown
risks, uncertainties, and other factors that may cause actual
results to differ materially. Such risks, uncertainties and other
factors include, but are not limited to, the potential for federal
government budget reductions, changes in general and local economic
and real estate market conditions, the timing and pricing of lease
transactions, the availability and cost of capital, fluctuations in
interest rates, tenants' financial conditions, levels of
competition, the effect of government regulation, the impact of
newly adopted accounting principles, and other risks and
uncertainties detailed from time to time in our filings with the
SEC, including our 2014 Form 10-K and subsequent quarterly reports
on Form 10-Q. We assume no obligation to update or supplement
forward-looking statements that become untrue because of subsequent
events.
CONTACT:
Tejal
Engman
|
|
1775 Eye Street,
N.W., Suite 1000
Washington, DC
20006
|
Director of Investor
Relations
E-Mail:tengman@washreit.com
|
Tel
202-774-3200
www.washreit.com
|
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SOURCE Washington Real Estate Investment Trust