Summary
Equity Residential, through its operating partnership ERP Operating Limited Partnership, has secured a new $600.0 million unsecured revolving credit facility. This facility, effective August 30, 2005, is set to mature on August 29, 2006, and will bear interest at LIBOR plus a spread tied to the Operating Partnership's credit rating, currently at 50 basis points. The company intends to use the proceeds to finance the acquisition of the Trump Place high-rise apartment towers in Manhattan and for general corporate purposes, with plans to repay the facility through property dispositions.
Key Highlights
- 1ERP Operating Limited Partnership entered into a new $600.0 million unsecured revolving credit facility.
- 2The credit facility matures on August 29, 2006.
- 3Interest on advances will be based on LIBOR plus a spread (currently 50 basis points), dependent on credit rating.
- 4The facility includes unused fees and an annual facility fee of 15 basis points.
- 5Proceeds are earmarked for the acquisition of the Trump Place apartment towers in Manhattan.
- 6Funds will also be used for general corporate purposes.
- 7The company plans to repay the credit facility using proceeds from property sales.
Frequently Asked Questions
The primary purpose of the new $600.0 million credit facility is to fund the acquisition of the Trump Place high-rise apartment towers located on Riverside Boulevard in Manhattan, and for general corporate purposes.
The new unsecured revolving credit facility matures on August 29, 2006.
The interest rate on advances will generally be LIBOR plus a spread of 50 basis points, based on the current credit rating. There are also unused fees of 15 basis points until February 1, 2006, an annual facility fee of 15 basis points thereafter, and a fee of 15 basis points if the facility is not terminated by January 31, 2006.
Equity Residential plans to repay the new credit facility from the proceeds generated by property dispositions.