8-KMaterial AgreementsFinancial EventsExhibits & Filings

ESSEX PROPERTY TRUST, INC. 8-K Report, Material Agreement (Dec 21, 2009)

Filed December 21, 2009For Securities:ESS

Summary

Essex Property Trust, Inc. (ESS) announced through its operating partnership, Essex Portfolio, L.P., the establishment of a new $200 million revolving line of credit on December 18, 2009. This credit facility provides the company with significant financial flexibility for strategic initiatives, including funding acquisitions, development and redevelopment projects, and general working capital needs. The one-year term, with options for two one-year extensions, indicates a short-to-medium term financing solution designed to support ongoing operational and growth objectives.

Key Highlights

  • 1Essex Portfolio, L.P. secured a new $200 million revolving line of credit.
  • 2The credit facility has an initial one-year term with two one-year extension options.
  • 3Funds can be used for acquisitions, development, redevelopment, and general working capital.
  • 4The interest rate is tiered and based on the company's corporate rate, currently LIBOR plus 300 basis points.
  • 5This agreement enhances the company's liquidity and capacity for growth initiatives.
  • 6The filing includes the Revolving Credit Agreement as an exhibit.
  • 7PNC Bank, National Association is the Administrative Agent, Sole Lead Arranger, and Sole Book Runner.

Frequently Asked Questions

The new revolving line of credit is intended to provide Essex Property Trust with financial resources to fund strategic activities such as property acquisitions, development and redevelopment projects, and to cover general working capital requirements.

The maximum commitment amount is $200 million. The facility has an initial term of one year, with the possibility of two additional one-year extensions, offering flexibility for the company's financial planning.

The interest rate is based on a tiered structure tied to Essex Property Trust's corporate rate. Currently, it is set at LIBOR plus 300 basis points.

PNC Bank, National Association is the main financial institution involved, serving as the Administrative Agent, Sole Lead Arranger, and Sole Book Runner for the credit facility.