SL Green Realty Corp., New York City's largest commercial property owner, announced that it has refinanced, extended and expanded its unsecured corporate credit facility by $217 million, to $3.0 billion.
The 5-year funded term loan component of the facility has been increased by $117 million to $1.3 billion, the maturity date has been extended from June 2019 to March 2023 and the current borrowing cost has been reduced to 135 basis points over LIBOR. The revolving line of credit component of the facility has been reduced by $100 million to $1.5 billion, the maturity date has been extended from March 2019 to March 2023, inclusive of as-of-right extension options aggregating 1-year, and the current borrowing cost was reduced to 120 basis points over LIBOR. In addition, a new $200 million, 7-year funded term loan component has been added to the facility, which matures in November 2024 and currently bears interest at 190 basis points over LIBOR.
SL Green Chief Financial Officer, Matt DiLiberto, commented, “This modification and expansion of our credit facility is a reflection of SL Green’s strong financial condition, platform and business strategy. There is continued appetite for corporate lending by the world’s highest quality financial institutions to well-capitalized companies in the New York City real estate market. This modification will further our unsecured borrowing strategy, extend our maturity profile and simplify our credit facility’s overall structure, while lowering our overall borrowing costs. We are very pleased to add this modification to the list of recent balance sheet-enhancing activities.”
Wells Fargo Securities, LLC; J.P. Morgan Securities LLC; Deutsche Bank Securities Inc.; U.S. Bank National Association; Merrill Lynch, Pierce, Fenner & Smith Incorporated; and BMO Capital Markets Group are Joint Lead Arrangers of the facility, with Wells Fargo Bank, National Association serving as the Administrative Agent, JPMorgan Chase Bank, N.A. serving as the Syndication Agent and Deutsche Bank AG New York Branch, U.S. Bank National Association, Bank of America, N.A. and Bank of Montreal serving as Co-Documentation Agents.