Gramercy, Chambers merge, get $2.08 billion of new credit facilities

By Angela McDaniels

Tacoma, Wash., Dec. 17 – Gramercy Property Trust Inc. and Chambers Street Properties completed their merger and replaced their credit facilities with $2.08 billion of new senior credit facilities, according to a news release.

One facility is a new $175 million seven-year term loan with Capital One, NA as lead arranger, bookrunner and administrative agent.

The other credit facility consists of a $750 million five-year term loan, a $300 million three-year term loan and an $850 million four-year revolving credit facility.

For the second facility, J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the joint bookrunners and joint lead arrangers. Wells Fargo Securities, LLC, U.S. Bank NA and Royal Bank of Canada are the joint lead arrangers. JPMorgan Chase Bank, NA is the administrative agent. Bank of America, NA is the syndication agent.

The revolver and the three-year term loan each have an option for a one-year extension.

In addition, the combined company completed a private placement of $150 million of 4.97% senior notes due December 2024. A $100 million portion of the placement was funded when the merger closed. The remaining $50 million is expected to fund in January.

Gramercy Property Trust, a New York-based real estate investment trust, is an investor and asset manager of commercial real estate. Chambers Street Properties is a net lease REIT based in Princeton, N.J.

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