Item 1.01 Entry into a Material Definitive Agreement.
On
The Credit Agreement amends and restates the Company's credit agreement, dated
as of
On
Based on the Company's current credit rating, the Revolving Credit Facility has
an interest rate equal to LIBOR plus a margin of 77.5 basis points and a
facility fee of 15 basis points, and the Term Loan has an interest rate equal to
LIBOR plus a margin of 85 basis points. Depending on the Company's credit rating
the margin under the Revolving Credit Facility ranges from 70 to 140 basis
points and the facility fee ranges from 10 to 30 basis points, and the margin
under the Term Loan ranges from 75 to 160 basis points. Further, the Credit
Agreement includes sustainability adjustments pursuant to which the applicable
margin for the Revolving Credit Facility and the Term Loan may be reduced by up
to two basis points after
The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Credit Agreement also includes customary events of default, in certain cases subject to customary periods to cure. The occurrence of an event of default, following the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest and all other amounts payable under the Credit Agreement to be immediately due and payable.
The Company's obligations under the Credit Agreement are guaranteed by
Copies of the Credit Agreement and the Guaranty are attached hereto as Exhibits 10.1 and 10.2, respectively, and are incorporated herein by this reference. The foregoing summary of the material terms of the Credit Agreement and the transactions contemplated thereby does not purport to be complete and is qualified in its entirety by reference to Exhibits 10.1 and 10.2.
Certain of the parties to the Credit Agreement, directly or through affiliates, have pre-existing relationships with the Company and have provided commercial lending, advisory and other services to the Company and its affiliates from
time to time, for which such parties have received customary fees and expenses. Certain of the parties to the Credit Agreement, directly or through affiliates, also have provided investment banking services to the Company, including serving as underwriters or agents in certain of the Company's public offerings of debt and equity securities, for which such parties received customary fees and expenses. These parties may, from time to time, engage in transactions with, and perform services for, the Company and its affiliates in the ordinary course of their business.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of the Registrant.
The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated into this Item 2.03 by this reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Ex. No. Description 10.1 Credit Agreement dated as ofSeptember 15, 2021 . 10.2 Guaranty ofUnited Dominion Realty, L.P. dated as ofSeptember 15, 2021 . 104 Cover Page Interactive Data File - The cover page XBRL tags are embedded within the Inline XBRL document.
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