Summary
Equity Residential (EQR), through its operating partnership ERP Operating Limited Partnership, has entered into a new $2.0 billion unsecured revolving credit agreement, replacing a prior facility. This new agreement, effective November 3, 2016, extends the maturity date to January 10, 2022, providing a longer-term financing solution. The company also retains the flexibility to increase the facility size by an additional $750 million. This refinancing demonstrates EQR's commitment to maintaining a strong liquidity position and managing its debt effectively. Investors should note that Equity Residential remains a guarantor of the operating partnership's obligations under this new credit facility, ensuring financial backing. The terms, including interest rates and facility fees, are tied to the company's credit rating, offering a cost-efficient structure that aligns with its financial health.
Key Highlights
- 1EQR's operating partnership secured a new $2.0 billion unsecured revolving credit agreement on November 3, 2016.
- 2The new credit facility has an extended maturity date of January 10, 2022, compared to the previous facility's April 2, 2018 maturity.
- 3EQR remains a guarantor for the operating partnership's obligations under the new credit facility.
- 4The facility allows for a potential increase of up to $750 million in borrowing capacity.
- 5Interest rates are based on LIBOR plus a spread, currently 82.5 basis points, dependent on EQR's credit rating.
- 6An annual facility fee of 12.5 basis points, also based on credit rating, is applicable.
- 7The agreement replaces the previous revolving credit facility.