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Government Properties Income Trust Enters New $500 Million Unsecured Revolving Credit Facility

^{Published on 2010-10-28 14:50:48 - Market Wire}
 

NEWTON, Mass.--([ BUSINESS WIRE ])--Government Properties Income Trust (NYSE: GOV) today announced that it has entered a new $500 million unsecured revolving bank credit facility. The new facility replaces GOVa™s previous $250 million secured revolving bank credit facility which had a maturity date of April 24, 2012. The maturity date of the new facility is October 28, 2013, and includes a borrowera™s option to extend the facility for one year to October 28, 2014. The new facility also includes a feature under which the maximum borrowing may be increased to up to $1 billion in certain circumstances.

GOV recently received investment grade senior unsecured debt ratings of Baa3 and BBB- from Moodya™s Investors Service and Standard & Poora™s Ratings Services, respectively. Interest paid on drawings under the new facility is set at LIBOR plus 210 basis points, subject to adjustments based on changes to GOVa™s credit ratings.

Wells Fargo Securities, LLC and Banc of America Securities LLC acted as Joint Lead Arrangers for the new facility. As compared to GOVa™s previous facility, the number of participating banks in the new facility increased from eight to 19 institutions. Banks participating in the new facility are as follows:

Government Properties Income Trust is a real estate investment trust, or REIT, which owns properties leased primarily to the U.S. Government and state governments located throughout the United States. GOV is headquartered in Newton, MA.

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 GOV 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 GOV'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 GOV'S CONTROL. FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. YOU SHOULD NOT PLACE UNDUE RELIANCE UPON GOVa™S FORWARD LOOKING STATEMENTS. EXCEPT AS MAY BE REQUIRED BY LAW, GOV 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.