NEW YORK--(BUSINESS WIRE)--Gramercy Property Trust (NYSE:GPT) announced today that it amended and upsized its existing $175 million unsecured term loan with Capital One, N.A. to $400 million. The amended term loan was arranged by Capital One, N.A., as sole lead arranger. The Company intends to use the net proceeds of the amended and upsized loan to reduce borrowings under its revolving credit facility.
Key modifications to the original agreement include:
- An additional $225.0 million of proceeds;
- Lower spreads across the pricing grid – current applicable spread is L + 110, a 42.5 basis point decrease; and
- A swapped fixed rate of approximately 3.00%, a decrease of 34 basis points from the original agreement.
The amended unsecured term loan will have a five-year term, maturing on January 9, 2023. Similar to the original agreement, the amended term loan will bear interest at a floating rate based upon, at the Company’s option, either (i) adjusted LIBOR plus an applicable margin, or (ii) the alternate base rate plus an applicable margin. The covenants for the amended term loan facility will also be consistent with the Company’s covenants for its existing credit facilities.
Jon W. Clark, Chief Financial Officer of Gramercy Property Trust, stated, “We are excited to announce the successful execution of this transaction, which will both increase our available liquidity and reduce our term loan interest rate. This transaction also highlights the strong relationship we maintain with our lenders, who have been incredibly supportive of the long-term vision for Gramercy.”
The borrowers under the amended term loan facility will be GPT Operating Partnership LP and GPT Property Trust LP, with Gramercy Property Trust as guarantor.
Company Profile
Gramercy Property Trust is a leading global investor and asset manager of commercial real estate. The Company specializes in acquiring and managing high quality, income producing commercial real estate leased to high quality tenants in major markets in the United States and Europe.
To review the Company’s latest news releases and other corporate documents, please visit the Company's website at www.gptreit.com or contact Investor Relations at 888-686-0112.
