Maguire Properties sets Feb. 23 launch for $580 million credit facility

By Sara Rosenberg

New York, Feb. 10 - Maguire Properties Inc. has scheduled a bank meeting for Feb. 23 to launch its $580 million credit facility, according to a syndicate document. Credit Suisse First Boston is the sole lead bank on the deal.

Expectations were that the deal would launch sometime in mid-to-late February, but prior to now, a bank meeting date was unavailable.

The facility consists of a $480 million five-year term loan and a $100 million four-year revolver with a 50 basis point commitment fee.

Pricing on the term loan is still to be determined, but it is expected to range somewhere in the range of Libor plus 175 to 225 basis points, company officials said in a January conference call.

Proceeds from the revolver will be used to refinance the company's existing $100 million revolver.

Proceeds from the term loan will be used to help finance the acquisition of a significant number of assets from CommonWealth Partners LLC's Fifth Street Properties Portfolio, a portfolio of office properties owned through a partnership with Rockefeller Group International Inc and the California Public Employees Retirement System, for about $1.51 billion.

More specifically, Maguire is buying 10 office properties comprising nearly 5 million square feet and four development sites entitled for more than 1.5 million square feet of office space. The portfolio is currently 86.4% leased.

In addition to the new bank debt, Maguire will be assuming about $155 million of mortgage financing and getting $900 million of new mortgage financing to help fund the acquisition as well, company officials said in the call.

The acquisition is expected to close around mid-March.

Maguire is a Los Angeles-based real estate investment company.

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