8-KMaterial AgreementsFinancial EventsExhibits & Filings

ESSEX PROPERTY TRUST, INC. 8-K Report, Material Agreement (Mar 31, 2006)

Filed March 31, 2006For Securities:ESS

Summary

Essex Property Trust, Inc. (ESS) filed an 8-K on March 31, 2006, reporting an amendment to its operating partnership's unsecured revolving line of credit. This amendment, effective March 24, 2005, increased the maximum commitment amount from $185 million to $200 million, providing the company with greater financial flexibility. The amended credit facility now matures in three years with a one-year extension option, offering a more extended period for its usage. Notably, the interest rate structure on the credit line has become more favorable, tied to the company's corporate rating and now set at LIBOR plus 80 basis points, down from LIBOR plus 100 basis points on the previous facility. These funds are designated for strategic initiatives including acquisition, development, and redevelopment projects, as well as general working capital needs, signaling the company's intent for growth and operational support.

Key Highlights

  • 1Operating partnership (Essex Portfolio, L.P.) amended its unsecured revolving line of credit.
  • 2Maximum commitment amount increased from $185 million to $200 million.
  • 3The credit facility's term was extended to three years with a one-year extension option.
  • 4Interest rate is now LIBOR plus 80 basis points (tiered based on corporate rating), a reduction from LIBOR plus 100 basis points.
  • 5The credit line will be used for acquisition, development, redevelopment, and general working capital.
  • 6The amendment was dated March 24, 2005, and reported in an 8-K filed on March 31, 2006.

Frequently Asked Questions

This 8-K filing announces a material definitive agreement, specifically the amendment to Essex Property Trust's operating partnership's unsecured revolving line of credit.

The maximum commitment amount was increased from $185 million to $200 million, the term was extended to three years with a one-year extension option, and the interest rate became more favorable (LIBOR + 80 basis points).

The funds from the amended credit line will be used to finance acquisition, development, and redevelopment activities, as well as for general working capital purposes.

The agreement is by and among Essex Portfolio, L.P., and various banks including Bank of America, N.A. (Administrative Agent), Bank of America Securities LLC (Sole Lead Arranger and Sole Book Manager), and others serving as Documentation Agent, Syndication Agent, and Managing Agents.