Liberty Property to repay debt under credit facility via new notes

By Sarah Lizee

Olympia, Wash., Jan. 22 – Liberty Property LP plans to prepay debt under its $900 million credit facility using proceeds from a new offering of dollar-denominated fixed-rate senior notes, according to a 424B2 filing with the Securities and Exchange Commission.

The facility includes an $800 million revolving credit facility and a $100 million delayed-draw term loan facility. The delayed-draw term loan is fully drawn.

The company also has a $30 million revolving working capital line of credit.

As of Friday, interest on the revolvers was Libor plus 87.5 basis points, and interest on the delayed-draw term loan was Libor plus 95 bps.

There is also a 15 bps annual facility fee on the revolvers.

As of Friday, the weighted average interest rate was 3.4% and $406.3 million was outstanding.

The facilities mature on Oct. 20, 2021 with two six-month extensions at the company's option.

Proceeds from the offering will also be used for working capital and general corporate purposes.

The financial services company is based in Tokyo.

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