Brandywine closes $600 million 48-month senior unsecured revolver

By Susanna Moon

Chicago, May 21 – Brandywine Realty Trust and Brandywine Operating Partnership, LP obtained a $600 million 48-month senior unsecured revolving credit facility on May 15, according to an 8-K filing with the Securities and Exchange Commission.

The companies said they may enter into unsecured term loans or increase the initial amount of the revolver by up to another $400 million.

The facility includes a $65 million sub-limit for the issue of letters of credit and a $60 million sub-limit for swing-loans.

The facility includes options for two six-month extensions.

Interest on the loans will be Libor plus 120 basis points, with a spread ranging from Libor plus 87.5 bps to 155 bps based on the company’s credit rating.

The commitment fee is 25 bps and ranges from 12.5 bps to 30 bps.

The covenants require the company to maintain a fixed-charge coverage ratio of at least 1.5 times and a leverage ratio of no more than 0.6 times.

In addition, the company may not pay dividends or make distributions for equity in excess of 95% of its funds from operations, except to the extent necessary to enable Brandywine Realty Trust to continue to qualify as a REIT for federal income tax purposes, the filing noted.

The covenants also limit the company’s ability to incur additional debt, grant liens on assets and enter into negative pledge agreements, merge, consolidate or sell all of substantially all of its assets and enter into transactions with affiliates.

BofA Merrill Lynch and Citigroup Global Markets Inc. are the joint lead arrangers and bookrunners. Bank of America, NA is the administrative agent and a swing lender. Citibank, NA is syndication agent and a swing lender. Citizens Bank, NA, PNC Bank NA, Royal Bank of Canada and Bank of New York Mellon are the co-documentation agents. Bank of Montreal, Barclays Bank plc, Suntrust Bank, TD Bank, NA, U.S. Bank NA and Wells Fargo Bank, NA are the senior managing agents.

Concurrently with the closing of the revolving credit agreement, the companies terminated its third amended and restated revolving credit agreement due Feb. 1, 2016.

The real estate investment trust for office and industrial properties is based in Radnor, Pa.

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