- Seven-Year Facility is Expandable to $365 Million -
Empire State Realty Trust, Inc. (NYSE:ESRT) (the "Company"), a leading
real estate investment trust with office and retail properties in
Manhattan and the greater New York metropolitan area, together with its
operating partnership, Empire State Realty OP, L.P. (the “Operating
Partnership”), today announced the closing of a new seven year $265.0
million senior unsecured term loan facility. The facility is expandable
by $100 million to $365.0 million under certain circumstances. The term
loan matures on August 24, 2022.
David A. Karp, Executive Vice President and Chief Financial Officer,
commented, “We continue to pursue opportunities to maximize our
financial flexibility while lowering our cost of capital. With the
closing of this loan, we have further extended and laddered our debt
maturities. We are pleased with the support from our bank group and with
our ongoing ability to access the unsecured debt capital markets, which
we believe validates the quality of our portfolio and the strength of
our balance sheet.”
The term loan facility bears interest at a floating rate equal to, at
the Company’s election, a LIBOR rate, plus a spread ranging from 1.400%
to 2.350%; or a base rate, plus a spread ranging from 0.400% to 1.350%,
in each case such spread determined by the Company’s leverage ratio and
credit rating. Pursuant to a forward interest rate swap agreement, the
Company has effectively fixed LIBOR at 2.1485% for $265.0 million of the
term loan facility for the period from August 31, 2017 through maturity.
The Company intends to apply the proceeds from the term loan facility to
repay borrowings made under its unsecured revolving credit facility.
Wells Fargo Bank, National Association, acted as administrative agent,
Capital One, National Association, acted as syndication agent, and PNC
Bank, National Association, acted as documentation agent. U.S. Bank
National Association also participated in the term loan.
About Empire State Realty Trust
Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate
investment trust (REIT), owns, manages, operates, acquires and
repositions office and retail properties in Manhattan and the greater
New York metropolitan area, including the Empire State Building, the
world's most famous building. Headquartered in New York, New York, the
Company's office and retail portfolio covers 10.0 million rentable
square feet, as of June 30, 2015, consisting of 9.3 million rentable
square feet in 14 office properties, including nine in Manhattan, three
in Fairfield County, Connecticut and two in Westchester County, New
York; and approximately 720,000 rentable square feet in the retail
portfolio.
Forward-Looking Statements
This press release includes “forward looking statements”.
Forward-looking statements may be identified by the use of words such as
“believes,” “expects,” “may,” “will,” “should,” “seeks,”
“approximately,” “intends,” “plans,” “pro forma,” “estimates,”
“contemplates,” “aims,” “continues,” “would” or “anticipates” or the
negative of these words and phrases or similar words or phrases. The
following factors, among others, could cause actual results and future
events to differ materially from those set forth or contemplated in the
forward-looking statements: the factors included in (i) the Company's
Annual Report on Form 10-K for the year ended December 31, 2014,
including those set forth under the headings "Risk Factors,"
"Management's Discussion and Analysis of Financial Condition and Results
of Operations," "Business,” and “Properties" and (ii) in future periodic
reports filed by the Company under the Securities and Exchange Act of
1934, as amended. While forward-looking statements reflect the Company's
good faith beliefs, they are not guarantees of future performance. The
Company disclaims any obligation to publicly update or revise any
forward-looking statement to reflect changes in underlying assumptions
or factors, or new information, data or methods, future events or other
changes after the date of this press release, except as required by
applicable law. For a further discussion of these and other factors that
could impact the Company's future results, performance or transactions,
see the section entitled “Risk Factors” in the Annual Report on Form
10-K for the year ended December 31, 2014 and other risks described in
documents subsequently filed by the Company from time to time with the
Securities and Exchange Commission. Prospective investors should not
place undue reliance on any forward-looking statements, which are based
only on information currently available to the Company (or to third
parties making the forward-looking statements).
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