Easterly Government Properties Amends 2016 Senior Unsecured Term Loan Agreement
Easterly Government Properties (NYSE: DEA) has announced significant amendments to its $100 million senior unsecured term loan agreement from 2016. The company has extended the maturity date from January 30, 2025, to January 28, 2028, with two optional one-year extensions potentially pushing it to January 28, 2030. The borrowing capacity on the accordion feature has been increased from $150 million to $250 million.
The company has entered into an interest rate swap to fix SOFR at 3.8569% annually. Borrowings will bear interest at SOFR plus a 0.10% credit spread adjustment and an additional spread of 1.20% to 1.70% based on the company's leverage ratio. The initial spread is set at 1.35%. The arrangement was facilitated by PNC Capital Markets , U.S. Bank National Association, and Truist Securities, Inc. as joint lead arrangers and bookrunners, with PNC Bank serving as the administrative agent.
Easterly Government Properties (NYSE: DEA) ha annunciato modifiche significative al suo accordo di prestito a termine senior non garantito da $100 milioni del 2016. La società ha esteso la data di scadenza dal 30 gennaio 2025 al 28 gennaio 2028, con due opzioni di estensione di un anno che potrebbero spingerla fino al 28 gennaio 2030. La capacità di prestito sulla caratteristica dell'accordion è stata aumentata da $150 milioni a $250 milioni.
La società ha stipulato uno swap sui tassi d'interesse per fissare il SOFR al 3,8569% annuo. I prestiti porteranno interesse a SOFR più un aggiustamento dello spread di credito dello 0,10% e un ulteriore spread dell'1,20% all'1,70% basato sul rapporto di leva della società. Lo spread iniziale è fissato all'1,35%. La transazione è stata facilitata da PNC Capital Markets, U.S. Bank National Association e Truist Securities, Inc. come arrangiatori principali congiunti e bookrunner, con PNC Bank che funge da agente amministrativo.
Easterly Government Properties (NYSE: DEA) ha anunciado modificaciones significativas a su acuerdo de préstamo a plazo senior no garantizado de $100 millones de 2016. La empresa ha extendido la fecha de vencimiento del 30 de enero de 2025 al 28 de enero de 2028, con dos extensiones opcionales de un año que podrían llevarla hasta el 28 de enero de 2030. La capacidad de préstamo en la característica de accordion se ha incrementado de $150 millones a $250 millones.
La empresa ha entrado en un swap de tasa de interés para fijar el SOFR en 3.8569% anualmente. Los préstamos llevarán un interés del SOFR más un ajuste de diferencial de crédito del 0.10% y un diferencial adicional del 1.20% al 1.70% basado en la relación de apalancamiento de la empresa. El diferencial inicial está establecido en el 1.35%. El acuerdo fue facilitado por PNC Capital Markets, U.S. Bank National Association y Truist Securities, Inc. como organizadores principales conjuntos y bookrunners, con PNC Bank actuando como agente administrativo.
Easterly Government Properties (NYSE: DEA)는 2016년의 1억 달러 규모의 무담보 장기 대출 계약에 대한 중요한 수정 사항을 발표했습니다. 회사는 만기일을 2025년 1월 30일에서 2028년 1월 28일로 연장했으며, 두 개의 선택적 1년 연장을 통해 2030년 1월 28일까지 연장할 수 있습니다. accordion 기능에서의 차입 용량이 1억 5천만 달러에서 2억 5천만 달러로 증가했습니다.
회사는 SOFR를 연 3.8569%로 고정하기 위해 금리 스왑거래를 체결했습니다. 차입금은 SOFR에 0.10%의 신용 스프레드 조정과 회사의 레버리지 비율에 따라 1.20%에서 1.70%의 추가 스프레드가 더해져 이자를 부과합니다. 초기 스프레드는 1.35%로 설정되어 있습니다. 이 거래는 PNC Capital Markets, U.S. Bank National Association 및 Truist Securities, Inc.가 공동 주관사 및 책정자인 가운데 이루어졌으며, PNC Bank가 관리 대행사로서 역할을 했습니다.
Easterly Government Properties (NYSE: DEA) a annoncé d'importantes modifications de son accord de prêt à terme senior non garanti de 100 millions de dollars datant de 2016. La société a prolongé la date d'échéance du 30 janvier 2025 au 28 janvier 2028, avec deux extensions d'un an facultatives pouvant la reporter jusqu'au 28 janvier 2030. La capacité d'emprunt sur la fonctionnalité d'accordion a été augmentée de 150 millions de dollars à 250 millions de dollars.
La société a contracté un swap de taux d'intérêt pour fixer le SOFR à 3,8569 % par an. Les emprunts porteront intérêt au SOFR plus un ajustement de spread de crédit de 0,10 % et un spread supplémentaire de 1,20 % à 1,70 % basé sur le ratio de levier de l'entreprise. Le spread initial est fixé à 1,35 %. L'arrangement a été facilité par PNC Capital Markets, U.S. Bank National Association, et Truist Securities, Inc. en tant qu'arrangeurs principaux conjoints et bookrunners, PNC Bank agissant en tant qu'agent administratif.
Easterly Government Properties (NYSE: DEA) hat bedeutende Änderungen an seiner unbesicherten Senior-Überbrückungskreditvereinbarung in Höhe von 100 Millionen USD aus dem Jahr 2016 angekündigt. Das Unternehmen hat das Fälligkeitsdatum von 30. Januar 2025 auf 28. Januar 2028 verlängert, mit zwei optionalen einjährigen Verlängerungen, die es bis zum 28. Januar 2030 verschieben könnten. Die Kreditaufnahmefähigkeit des Accordion-Features wurde von 150 Millionen USD auf 250 Millionen USD erhöht.
Das Unternehmen hat einen Zinssatz-Swap abgeschlossen, um den SOFR auf 3,8569 % jährlich zu fixieren. Die Darlehen werden mit SOFR zzgl. eines Kreditspread-Anpassungsfaktors von 0,10 % und einem zusätzlichen Spread von 1,20 % bis 1,70 % basierend auf dem Verschuldungsverhältnis des Unternehmens verzinst. Der anfängliche Spread beträgt 1,35 %. Die Vereinbarung wurde von PNC Capital Markets, U.S. Bank National Association und Truist Securities, Inc. als gemeinsame Hauptarrangeure und Bookrunner durchgeführt, wobei PNC Bank als Verwaltungsagent fungierte.
- Extended loan maturity by 3 years with option for 2 additional years
- Increased accordion borrowing capacity by $100 million to $250 million
- Fixed SOFR rate at 3.8569% through interest rate swap, reducing future interest rate uncertainty
- None.
Insights
The amendment of DEA's
The current spread of
The timing is particularly strategic as it eliminates near-term refinancing risk that would have come due in 2025, while the increased accordion capacity provides additional dry powder for future acquisitions without immediate interest expense impact. This proactive liability management enhances DEA's financial flexibility and supports their growth strategy in the government property sector.
This refinancing demonstrates DEA's strong market position in the government-leased property sector. The successful amendment under favorable terms, particularly the expanded accordion feature, reflects lenders' confidence in DEA's business model and the quality of their Class A government-leased portfolio. The preservation of similar spread pricing (starting at
The extended maturity profile better aligns with the long-term nature of government leases, which typically range from 10-20 years. This matching of asset and liability duration is important for REITs focused on federal government properties. The increased flexibility from the
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Increased Term Loan borrowing capacity grows by
$100 million - Extended maturity by up to five years and fixed future cost of borrowing
Easterly extended the maturity date of the Amended 2016 Term Loan from January 30, 2025 to January 28, 2028. Further, the Company may exercise at its discretion two one-year extension options, subject to certain conditions, thus extending the maturity date as late as January 28, 2030. Easterly further secured increased borrowing capacity on the accordion feature from
“We are very pleased to have amended our 2016 Term Loan under such favorable terms,” said Allison Marino, Easterly’s Chief Financial and Chief Accounting Officer. “Thanks to our strong banking relationships and superior credit profile, we have extended the duration of our liabilities while maintaining a strong balance sheet and long-term debt capacity. This enables us to remain focused on executing a disciplined investment strategy and delivering growth to shareholders.”
In connection with the Amended 2016 Term Loan, the Company also entered into an interest rate swap to effectively fix SOFR at
PNC Capital Markets LLC,
About Easterly Government Properties, Inc.
Easterly Government Properties, Inc. (NYSE:DEA) is based in
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “anticipate,” “position,” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to those risks and uncertainties associated with our business described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on February 27, 2024. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.
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Easterly Government Properties, Inc.
Lindsay S. Winterhalter
Senior Vice President, Investor Relations & Operations
202-596-3947
ir@easterlyreit.com
Source: Easterly Government Properties, Inc.
FAQ
What changes did Easterly Government Properties (DEA) make to its 2016 term loan in 2023?
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