Item 1.01. Entry into a Material Definitive Agreement.
On May 24, 2022, we modified our $200.0 million unsecured bank term loan to
extend the maturity date from November 2022 to May 2026. As part of this
modification, we also obtained a $150.0 million delayed-draw term loan that is
scheduled to mature in May 2027. We expect to use the additional $150.0 million
of borrowings, which must be drawn in their entirety within 90 days, for working
capital purposes, the short-term funding of our development and acquisition
activity and the repayment of other debt. The interest rate, based on current
credit ratings, is SOFR plus a related spread adjustment of 10 basis points and
a borrowing spread of 95 basis points. The interest rate is based on the higher
of the publicly announced ratings from Moody's Investors Service or Standard &
Poor's Ratings Services. We may be entitled to a temporary reduction in the
interest rate of one basis point provided we meet certain sustainability goals
with respect to the ongoing reduction of greenhouse gas emissions.
In connection with the foregoing, the interest rate on our $750.0 million
unsecured revolving credit facility was converted from LIBOR plus 90 basis
points to SOFR plus a related spread adjustment of 10 basis points and a
borrowing spread of 85 basis points, based on current credit ratings. The
interest rate is based on the higher of the publicly announced ratings from
Moody's Investors Service or Standard & Poor's Ratings Services. We may be
entitled to a temporary reduction in the interest rate of one basis point
provided we meet certain sustainability goals with respect to the ongoing
reduction of greenhouse gas emissions. Also, the accordion feature, which allows
for additional borrowing capacity subject to additional lender commitments, was
reduced from $550.0 million to $400.0 million.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information in this report set forth above under Item 1.01 is incorporated
herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
No. Description
10 First Amendment to Sixth Amended and Restated Credit Agreement, dated as
of May 24, 2022, by and among the Company, the Operating Partnership, Bank of
America, N.A., as Administrative Agent, Wells Fargo Bank, National Association,
as Co-Syndication Agent, PNC Bank, National Association, as Co-Syndication
Agent, and the Other Lenders named therein
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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