WASHINGTON, March 29, 2018 (GLOBE NEWSWIRE) -- Washington REIT (Washington Real Estate Investment Trust)
(NYSE:WRE) has entered into an amended, extended and expanded $700 million unsecured revolving credit facility and refinanced
an existing $150 million seven-year unsecured term loan with a $250 million five-year unsecured term loan.
The revolving credit facility will have a four-year term ending on March 29, 2022, with two six-month extension
options, and extends and expands Washington REIT’s existing $600 million revolving credit facility that was set to expire on June
22, 2019. The interest rate under the revolving credit facility will be based upon a spread over LIBOR determined by Washington
REIT’s then unsecured debt rating (the current spread over LIBOR is 100 basis points).
Washington REIT has refinanced its existing $150 million, seven-year term loan expiring on July 21, 2023 with a
$250 million five-year term loan having the same expiration date. There is no premium or penalty associated with this refinancing.
The interest spread for the existing $150 million term loan expiring in 2023 has been reduced by 55 basis points by swapping to a
lower fixed interest rate of 2.31% through scheduled maturity, after giving effect to interest rate swap arrangements. Washington
REIT has entered into interest rate swap arrangements to swap the floating interest rate for the additional $100 million term loan
to an all-in fixed interest rate of 3.71% for the period beginning June 29, 2018 through scheduled maturity. The $100 million of
additional proceeds from the expanded term loan will be used to repay amounts outstanding on the unsecured revolving credit
facility.
The March 15, 2021 maturity date and interest rate pricing on the existing $150 million five-year unsecured term
loan remains unchanged. In addition, and subject to lender approval, Washington REIT has the ability to exercise an accordion
feature to increase the aggregate credit facilities to $1.5 billion.
“Washington REIT’s expanded credit facility with improved financial covenants and term loan present an
attractive source of capital that extends our liquidity and provides us with greater flexibility to make optimal capital allocation
decisions for our shareholders,” said Stephen E. Riffee, Executive Vice President and Chief Financial Officer of Washington REIT.
“We thank our team of lenders for their long-term commitment to the growth and success of our company.”
Wells Fargo Bank, National Association served as administrative agent for the credit facilities. Wells Fargo
Securities, LLC, KeyBanc Capital Markets Inc. and Capital One, National Association served as joint lead arrangers for the
revolving credit facility, and Wells Fargo Securities, LLC and KeyBanc Capital Markets Inc. served as joint bookrunners for the
revolving credit facility. KeyBank National Association and Capital One, National Association also served as syndication agents for
the revolving credit facility. U.S. Bank National Association, SunTrust Bank, and PNC Bank, National Association served as
documentation agents for the revolving credit facility. Additional participants include Citibank, N.A., Goldman Sachs Bank USA,
JPMorgan Chase Bank, N.A., Morgan Stanley Bank, N.A., The Bank of New York Mellon, and Branch Banking and Trust Company.
Wells Fargo Securities, LLC, Capital One, National Association and U.S. Bank National Association served as
joint lead arrangers and joint bookrunners for the $250 million term loan. Capital One, National Association and U.S. Bank National
Association served as syndication agents. Other lenders included Branch Banking and Trust Company, The Bank of New York Mellon, PNC
Bank, National Association and SunTrust Bank.
Washington REIT owns and operates uniquely positioned real estate assets in the Washington D.C. market. The
company’s portfolio of 49 properties consists of approximately 6.4 million square feet of commercial space and 4,268 multifamily
apartment units. These 49 properties consist of 20 office properties, 16 retail centers and 13 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. Forward-looking statements include statements in this press release preceded by, followed
by or that include the words “believe,” “expect,” “intend,” “anticipate,” “potential,” “project,” “will” and other similar
expressions. 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, changes in general and local
economic and real estate market conditions, the potential for federal government budget reductions, the risk of failure to complete
contemplated acquisitions and dispositions, 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, and
other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2017 Form 10-K. We assume no
obligation to update or supplement forward-looking statements that become untrue because of subsequent
events.
CONTACT:
Tejal Engman
Vice President, Investor Relations
E-Mail:tengman@washreit.com
Tel 202-774-3200
