Washington REIT amends credit agreement for $150 million term loan

By Marisa Wong

Morgantown, W.Va., Sept. 16 – Washington Real Estate Investment Trust amended its credit agreement dated June 23 with Wells Fargo Bank, NA as administrative agent to add a $150 million unsecured incremental term loan.

The term loan was fully funded on Sept. 15 and has a maturity date of March 15, 2021.

No amortization payments are due prior to maturity, and the term loan may be voluntarily prepaid in full or in part at any time without premium or penalty.

Interest is equal to Libor plus a margin ranging from 90 basis points to 175 bps, depending on the company’s credit rating.

The company also entered into interest rate swap arrangements for the full amount of the term loan. Effectively, the company will pay a fixed interest rate of about 2.72%. These swap arrangements will take effect on Oct. 15 and will expire on the maturity date.

Proceeds were used to repay amounts outstanding under the company’s revolving credit facility.

Washington is a REIT that invests in the greater Washington, D.C., metro region and is based in Rockville, Md.

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