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CommonWealth REIT Enters New $750 Million Bank Facility

^{Published on 2010-08-09 16:17:22 - Market Wire}
 

NEWTON, Mass.--([ BUSINESS WIRE ])--CommonWealth REIT (NYSE: CWH) today announced that it has entered a new $750 million unsecured revolving bank credit facility. The new facility replaces CWHa™s previous $750 million unsecured revolving bank credit facility which had a maturity date of August 22, 2010. The maturity date of the new facility is August 8, 2013, and includes a borrowera™s option to extend the facility for one year to August 8, 2014. The new facility also includes a feature under which the maximum borrowing may be increased to up to $1.5 billion in certain circumstances.

Interest paid on drawings under the new facility is set at LIBOR plus 200 basis points, subject to adjustments based on changes to CWHa™s credit ratings.

Wells Fargo Securities LLC and Banc of America Securities LLC acted as Joint Lead Arrangers and Joint Bookrunners for the new facility. As compared to CWHa™s previous facility, the number of participating banks in the new facility increased from 26 to 28 institutions. Banks participating in the new facility are as follows:

CommonWealth REIT is a nationwide office and industrial real estate investment trust, or REIT. As of June 30, 2010, CWH owned 521 properties with 67.5 million square feet located in over 60 markets in 34 states and Washington, DC. CWH is headquartered in Newton, Massachusetts.

WARNING CONCERNING FORWARD LOOKING STATEMENTS

CERTAIN STATEMENTS CONTAINED IN THIS PRESS RELEASE ARE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND FEDERAL SECURITIES LAWS. THESE INCLUDE STATEMENTS REGARDING (1) FUTURE AVAILABILITY OF BORROWINGS UNDER OUR NEW REVOLVING CREDIT FACILITY, (2) A FEATURE UNDER WHICH CWH MAY EXPAND THE MAXIMUM AVAILABILITY UNDER THE CREDIT FACILITY, AND (3) THE INTEREST PAID ON DRAWINGS UNDER THE CREDIT FACILITY. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY THESE FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:

• CONTINUED AVAILABILITY OF BORROWINGS UNDER THE CREDIT FACILITY IS SUBJECT TO CWH'S SATISFYING CERTAIN FINANCIAL COVENANTS AND MEETING OTHER CUSTOMARY CONDITIONS.
• INCREASING THE MAXIMUM BORROWINGS UNDER THE CREDIT FACILITY IS SUBJECT TO OBTAINING ADDITIONAL COMMITMENTS FROM LENDERS, WHICH COULD BE IMPACTED BY CHANGES IN OUR FINANCIAL CONDITION, THE ECONOMY OR THE CAPITAL MARKETS.
• ACTUAL ANNUAL COSTS UNDER THE CREDIT FACILITY WILL BE HIGHER THAN LIBOR PLUS A PREMIUM ON DRAWINGS BECAUSE OF OTHER FEES AND EXPENSES ASSOCIATED WITH THE CREDIT FACILITY.

SOME OF THESE FACTORS ARE BEYOND CWH'S CONTROL. FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. YOU SHOULD NOT PLACE UNDUE RELIANCE UPON CWHa™S FORWARD LOOKING STATEMENTS. EXCEPT AS MAY BE REQUIRED BY LAW, CWH DOES NOT INTEND TO UPDATE OR CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the New York Stock Exchange.No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.