Business & Finance
Business and Finance
Business and Finance
Thu, October 27, 2011
Wed, October 26, 2011 CommonWealth REIT Extends Term and Reduces Rate on Increased Term Loan
NEWTON, Mass.--([ BUSINESS WIRE ])--CommonWealth REIT (NYSE: CWH) today announced that it has amended and increased its existing $400 million unsecured term loan to $557 million.
Prior to this amendment, CWHas term loan had a maturity date of December 15, 2015 and interest paid on borrowings was LIBOR plus 200 basis points, subject to adjustments based on changes to CWHas credit ratings. The maturity date of the amended term loan is extended to December 15, 2016 and interest paid on borrowings is reduced to LIBOR plus 150 basis points, subject to adjustments based on changes to CWHas credit ratings. In addition, the maximum borrowing may be increased up to $1.0 billion in certain circumstances.
CWH expects to use the increased proceeds of the term loan to repay amounts outstanding under its $750 million revolving credit facility and fund general business activities, including possible future acquisitions.
Wells Fargo Securities, LLC served as Sole Lead Arranger for the amended term loan. Banks participating in the term loan are as follows:
Name of Institution | Facility Title | ||||||
| Wells Fargo Bank, N.A. | Administrative Agent | ||||||
| Regions Bank | Syndication Agent | ||||||
| BBVA Compass Bank | Syndication Agent | ||||||
| Royal Bank of Canada | Syndication Agent | ||||||
| U.S. Bank National Association | Syndication Agent | ||||||
| PNC Bank, National Association | Senior Managing Agent | ||||||
| Sumitomo Mitsui Banking Corporation | Senior Managing Agent | ||||||
| Bank of Tokyo-Mitsubishi UFJ, Ltd. | Senior Managing Agent | ||||||
| Capital One, N.A. | Senior Managing Agent | ||||||
| Union Bank, NA | Senior Managing Agent | ||||||
| BB&T Capital Markets | Lender | ||||||
| TD Bank, N.A. | Lender | ||||||
| First Hawaiian Bank | Lender | ||||||
| Comerica Bank | Lender | ||||||
| Malayan Bank | Lender | ||||||
| Bank of Nova Scotia | Lender | ||||||
| Sovereign Bank | Lender |
Three lenders representing $57 million of aggregate borrowings were unable to commit to the amended terms. Accordingly, these three lenders will be subject to the terms of the old term loan and CWH has agreed to repay these lenders in December 2012 when there will be no prepayment penalty applicable.
CommonWealth REIT is a real estate investment trust, or REIT, which primarily owns office and industrial properties located throughout the United States. CWH is headquartered in Newton, Massachusetts.
WARNING CONCERNING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE INCLUDES FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. THESE INCLUDE STATEMENTS REGARDING FUTURE AVAILABILITY OF BORROWINGS UNDER THE AMENDED TERM LOAN AND INTEREST PAID ON BORROWINGS UNDER THE TERM LOAN. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY THESE FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:
- ACTUAL ANNUAL COSTS UNDER THE AMENDED TERM LOAN WILL BE HIGHER THAN LIBOR PLUS A PREMIUM ON DRAWINGS BECAUSE OF OTHER FEES AND EXPENSES ASSOCIATED WITH THE FACILITY.
- INCREASING THE MAXIMUM BORROWINGS UNDER THE TERM LOAN TO $1.0 BILLION IS SUBJECT TO OBTAINING ADDITIONAL COMMITMENTS FROM LENDERS, WHICH MAY NOT OCCUR.
SOME OF THESE FACTORS ARE BEYOND CWH'S CONTROL. FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. FOR THE FOREGOING REASONS, AMONG OTHERS, INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS. EXCEPT AS 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.
