Easterly Government Properties announced the closing of a new five-year $200 million senior unsecured term loan facility. The term loan includes an accordion feature that allows Easterly to increase commitments by up to $50 million, subject to certain conditions.
This would bring the total facility size to $250 million.
The term loan will mature in June 2031.
Easterly plans to use the net proceeds from the term loan to repay borrowings outstanding under its unsecured $400 million revolving credit facility and for general corporate purposes.
Borrowings under the new term loan will bear interest at a rate of SOFR plus a spread of 1.20% to 1.70%, depending on the company’s leverage ratio.
Based on Easterly’s current leverage ratio, the initial spread to SOFR is set at 1.30%.
Easterly Government Properties is a fully integrated real estate investment trust based in Washington, D.C. The company focuses primarily on the acquisition, development, and management of Class A commercial properties leased to the U.S. Government and its adjacent partners.
Easterly’s management team has specialized experience serving the property needs of mission-critical U.S. Government agencies, including properties leased directly to such agencies or through the U.S. General Services Administration.
Support: U.S. Bank National Association, PNC Capital Markets, and Truist Securities served as joint bookrunners. U.S. Bank National Association, PNC Capital Markets, Truist Securities, and Wells Fargo Securities served as joint lead arrangers.
PNC Bank served as administrative agent, U.S. Bank National Association and Truist Bank served as syndication agents, and Wells Fargo Bank served as documentation agent.
KEY QUOTES:
“We are pleased to expand our capital base with this new term loan facility. The transaction enhances our liquidity profile and supports our ability to efficiently fund future growth initiatives.”
Allison E. Marino, CFO of Easterly Government Properties
