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WASHINGTON, July 26, 2021--(BUSINESS WIRE)--Easterly Government Properties, Inc. (NYSE: DEA) (the "Company" or "Easterly"), a fully integrated real estate investment trust focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government, today announced it has replaced its existing senior unsecured revolving credit facility with an amended and upsized credit facility (the "Amended Credit Facility"), consisting of (i) a $450 million revolving senior unsecured credit facility (the "Revolver") and (ii) a $200 million senior unsecured term loan facility (the "Term Loan"), up to $50 million of which will be available on a delayed draw basis for up to 364 days after the closing date, for a total credit facility size of $650 million. The Revolver includes an accordion feature that allows the Company to request additional lender commitments of up to $250 million, for a total Amended Credit Facility capacity of up to $900 million. The Revolver will initially mature four years from the closing date, in July 2025, with two six-month as-of-right extension options available to extend the maturity to July 2026. The Term Loan will mature five years from the closing date, in July 2026. The Term Loan is prepayable without penalty for the entire term of the loan.
Borrowings under the Revolver will bear interest at a rate of LIBOR plus a spread of 1.20% to 1.80%, depending on the Company's leverage ratio. The Term Loan will bear interest at a rate of LIBOR plus a spread of 1.20% to 1.70%, depending on the Company's leverage ratio. Given the Company's current leverage ratio, the initial spread to LIBOR is set at 1.25% for the Revolver and 1.20% for the Term Loan. The Amended Credit Facility also features a sustainability-linked pricing component whereby the spread will decrease by 0.01% if Easterly achieves certain sustainability targets as determined by an independent third-party evaluation.
"The implementation of an expanded credit facility that incorporates sustainability performance metrics is indicative of Easterly’s commitment to meaningful progress in our ESG journey," said Meghan G. Baivier, Easterly’s Chief Financial and Operating Officer. "We believe earning an even more attractive cost of capital for embracing the benefits of sustainability is an obvious next step for our expanded and diversified balance sheet."
The Company intends to use borrowings under the Amended Credit Facility for general corporate purposes, including but not limited to acquisitions, development, redevelopment and other capital expenditures.
In addition, the Company has amended its existing $100 million senior unsecured term loan to conform certain provisions to those included in the Amended Credit Facility.
Citibank, N.A., PNC Capital Markets LLC and Wells Fargo Securities, LLC served as joint lead arrangers and joint bookrunners on the Amended Credit Facility. Citibank, N.A. served as administrative agent and PNC Bank, National Association and Wells Fargo Bank, N.A. served as co-syndication agents.
About Easterly Government Properties, Inc.
Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.
Forward Looking Statements
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 24, 2021. 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
Vice President, Investor Relations and Operations