NEW YORK--(BUSINESS WIRE)--
Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate
investment trust with office and retail properties in Manhattan and the
greater New York metropolitan area, today announced that Empire State
Realty OP, L.P., its operating partnership (the “Company”), has entered
into a new master credit facility in the original principal amount of
$1.365 billion, which consists of a $1.1 billion revolving credit
facility and a $265 million term loan facility. The new revolving credit
facility replaces the existing credit facility which was due to mature
in January 2019 and currently remains undrawn. The term loan facility
was borrowed in full at closing and used to repay the existing $265
million term loan due in 2022. The Company has the ability to further
increase the total capacity of the facility to $1.75 billion, with
additional exercises of an accordion option during the term of the new
facility.
The revolving credit facility matures on August 29, 2021, and may be
extended by two six-month periods at the option of the Company. The term
loan facility matures on August 29, 2022.
Initial interest rates on the new facility, which may change based on
Company leverage levels, are LIBOR plus 120 basis points for the term
loan and LIBOR plus 110 basis points for any drawn portion of the
revolving credit facility, a savings of 40 and 5 basis points,
respectively, from the prior facilities. In addition, the current annual
revolving credit facility fee decreased from 20 basis points to 15 basis
points.
David A. Karp, Executive Vice President and Chief Financial Officer,
commented, “We are pleased to extend our debt maturities, lower our
borrowing costs, add flexibility to our financial covenants and enhance
our already strong liquidity position.”
Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo
Securities, LLC are Joint Lead Arrangers and Joint Bookrunners for the
new facility with Bank of America, N.A. serving as Administrative Agent.
Wells Fargo, National Association and Capital One, National Association
serve as Co-Syndication Agents. Capital One, National Association, BMO
Harris Bank, N.A., Citizens Bank, National Association and U.S. Bank
National Association are Joint Lead Arrangers and Barclays Bank PLC,
Goldman Sachs Bank USA and JPMorgan Chase Bank, N.A., are Senior
Managing Agents. Other lenders under the facility include Branch Banking
& Trust Company and Keybank National Association.
About Empire State Realty Trust
Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate
investment trust (REIT), owns, manages, operates, acquires and
repositions office and retail properties in Manhattan and the greater
New York metropolitan area, including the Empire State Building, the
world's most famous building. Headquartered in New York, New York, the
Company's office and retail portfolio covers 10.1 million rentable
square feet, as of June 30, 2017, consisting of 9.4 million rentable
square feet in 14 office properties, including nine in Manhattan, three
in Fairfield County, Connecticut and two in Westchester County, New
York; and approximately 700,000 rentable square feet in the retail
portfolio.
Forward-Looking Statements
This press release includes “forward looking statements” within the
meaning of the federal securities laws. Forward-looking statements may
be identified by the use of words such as “believes,” “expects,” “may,”
“will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro
forma,” “estimates,” “contemplates,” “aims,” “continues,” “would” or
“anticipates” or the negative of these words and phrases or similar
words or phrases. The following factors, among others, could cause
actual results and future events to differ materially from those set
forth or contemplated in the forward-looking statements: changes in our
industry, the real estate markets, either nationally or in Manhattan or
the greater New York metropolitan area; resolution of legal proceedings
involving the company; reduced demand for office or retail space;
general volatility of the capital and credit markets and the market
price of our Class A common stock and our publicly-traded operating
partnership units; changes in our business strategy; changes in
technology and market competition which affect utilization of our
broadcast or other facilities; changes in domestic or international
tourism, including geopolitical events and currency exchange rates;
defaults on, early terminations of, or non-renewal of, leases by
tenants; fluctuations in interest rates; declining real estate
valuations and impairment charges; termination or expiration of our
ground leases; our failure to obtain or maintain necessary outside
financing, including our unsecured revolving credit facility; our
leverage; decreased rental rates or increased vacancy rates; our failure
to redevelop and reposition properties, or to execute any newly planned
capital project, successfully or on the anticipated timeline or at the
anticipated costs; difficulties in identifying properties to acquire and
completing acquisitions; risks of real estate development (including our
Metro Tower development site) and capital projects, including the cost
of construction delays and cost overruns; impact of changes in
governmental regulations, tax law and rates and similar matters; and our
failure to qualify as a real estate investment trust, or REIT. For a
further discussion of these and other factors that could impact the
Company's future results, performance or transactions, see the section
entitled “Risk Factors” in the Annual Report on Form 10-K for the year
ended December 31, 2016, and other risks described in documents
subsequently filed by the Company from time to time with the Securities
and Exchange Commission.
While forward-looking statements reflect the Company's good faith
beliefs, they are not guarantees of future performance. The Company
disclaims any obligation to publicly update or revise any
forward-looking statement to reflect changes in underlying assumptions
or factors, new information, data or methods, future events, or other
changes after the date of this press release, except as required by
applicable law. Prospective investors should not place undue reliance on
any forward-looking statements, which are based only on information
currently available to the Company (or to third parties making the
forward-looking statements).
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Investors
Empire State
Realty Trust Investor Relations
212-850-2678
IR@empirestaterealtytrust.com
Source: Empire State Realty Trust, Inc.