Empire State Realty Trust Refinances Its Existing Revolving Credit Facility and Term Loan

NEW YORK--()--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).

Contacts

Investors
Empire State Realty Trust Investor Relations
212-850-2678
IR@empirestaterealtytrust.com

Contacts

Investors
Empire State Realty Trust Investor Relations
212-850-2678
IR@empirestaterealtytrust.com