TIAA Real Estate enters $1 billion revolver, $500 million term loan

By Wendy Van Sickle

Columbus, Ohio, Sept. 22 – Teachers Insurance and Annuity Association of America, on behalf of borrower TIAA Real Estate Account, entered into a credit agreement on Sept. 16 providing for up to $1 billion of revolving loans and $500 million of term loans, according to an 8-K filing with the Securities and Exchange Commission.

Loans under the credit facility will mature two years from the closing date, unless extended.

Borrowings bear interest at term SOFR plus a credit spread adjustment of 10 basis points plus a margin ranging from 87.5 bps to 130 bps for revolving loans and 100 bps to 150 bps for term loans, both based on total leverage ratio. The revolver has a facility fee that ranges from 12.5 bps to 20 bps and is based on total leverage ratio.

The borrower must comply with financial covenants including a total leverage ratio, fixed-charges ratio, consolidated net worth, unencumbered leverage ratio and unsecured interest coverage ratio.

JPMorgan Chase Bank, NA and U.S. Bank NA are the joint bookrunners and joint lead arrangers along with BofA Securities, Inc., PNC Capital Markets LLC, Standard Chartered Bank, New York and Wells Fargo Securities LLC. JPMorgan is the administrative agent.

Proceeds may be used for funding general organizational purposes of the borrower and its subsidiaries in the ordinary course of business, including to finance certain real estate portfolio investments.

New York-based Teachers Insurance & Annuity Association of America is a provider of financial services in the academic, research, medical, cultural and government fields.

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