CHICAGO--(BUSINESS WIRE)-- Equity Commonwealth (NYSE: EQC) today announced it entered into a new $1.15 billion Credit Agreement. The new Credit Agreement reduced the interest rate and extended the term of the Company’s unsecured revolving credit facility and term loan borrowings. The agreement is comprised of a $750 million revolving credit facility, a $200 million five-year term loan, and a $200 million seven-year term loan.

The new Credit Agreement reduced the interest rate on the revolving credit facility by 25 basis points to LIBOR plus 125 basis points and the facility fee 10 basis points to 25 basis points. The interest rate on the 5-year term loan decreased 45 basis points to LIBOR plus 140 basis points and the interest rate on the 7-year term loan is LIBOR plus 180 basis points. The interest rates and facility fee adjust based on EQC’s senior unsecured credit ratings.

The term loans replaced the previous $400 million term loan that was scheduled to mature on December 15, 2016. EQC does not have an outstanding balance on the revolving credit facility.

Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as Joint Lead Arrangers and Bookrunners for the revolving credit facility and five-year term loan. Wells Fargo Securities, LLC acted as Sole Lead Arranger and Sole Bookrunner for the seven-year term loan. Wells Fargo Bank, NA, will serve as Administrative Agent under the Credit Agreement. A group of 19 financial institutions participated in the revolving credit facility and term loan syndicates.

About Equity Commonwealth

Equity Commonwealth (NYSE: EQC) is an internally managed and self-advised real estate investment trust (REIT). EQC is one of the largest commercial office REITs in the United States, with a portfolio of over 40 million square feet located in 30 states, DC and Australia.

Forward-Looking Statements

This press release may contain forward-looking statements and information within the meaning of the federal securities laws, including statements regarding applicable interest rates and fees under the Credit Agreement, compliance with the covenants, terms and conditions of the Credit Agreement and the ability to obtain additional borrowings. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Commonwealth management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks. Other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.eqcre.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Commonwealth assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Equity Commonwealth
Investor and Media Contact:
Sarah Byrnes, Investor Relations
(312) 646-2801
[email protected]
www.eqcre.com

Source: Equity Commonwealth