| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers E > Headlines for Equity Residential Properties > News item |
Equity Residential gets $2.5 billion revolver, $750 million term loan
By Angela McDaniels
Tacoma, Wash., Jan. 14 - Equity Residential entered into a $2.5 billion revolving credit facility and a $750 million delayed-draw senior term loan on Friday, according to a company news release.
The revolver matures in April 2018. At the company's current credit rating, the interest rate is Libor plus 105 basis points and the annual facility fee is 15 bps.
The revolver replaced the company's $1.75 billion facility due July 2014.
The term loan matures on Jan. 11, 2015 and has a one-year extension option. The initial interest rate is Libor plus 120 bps.
The term loan is undrawn and is available in one draw made on or before July 11.
The company said the term loan may be used to fund the Archstone Enterprise LP acquisition or for other corporate purposes.
Equity Residential and AvalonBay Communities, Inc. are acquiring Archstone's assets and liabilities for about $16 billion. The combined purchase price consists of $2.7 billion cash, $3.8 billion of shares and the assumption of about $9.5 billion of debt and $330 million of preferred equity.
Equity Residential will get about 60% of Archstone's assets and liabilities. It plans to pay its portion of the purchase price with $2.02 billion of cash and 34,468,085 shares, and it will be responsible for about $5.5 billion of consolidated and unconsolidated secured debt.
The transaction is expected to close during the first quarter.
With the completion of these financing activities, the company terminated the $2.5 billion bridge loan facility commitment that it obtained in November.
"Between these loans and the proceeds from the more than $3 billion of non-core assets we have recently sold or have under contract, we have exceeded our funding objectives for the Archstone closing," Equity Residential executive vice president and chief financial officer Mark Parrell said in the release.
Equity Residential acquires and manages apartment properties and is based in Chicago.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.