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Washington REIT secures upsized $700M revolver

Diversified real estate investment trust Washington REIT secured an amended, extended and upsized $700 million unsecured revolving credit facility and refinanced a $150 million seven-year unsecured term loan with a $250 million five-year unsecured term loan.

The revolving credit facility will have a four-year term expiring March 29, 2022, with two six-month extension options. The previous facility was for $600 million.

The interest rate under the revolving credit facility will be based upon a spread over the London Interbank Offered Rate determined by the company's then unsecured debt rating.

Washington REIT refinanced its existing $150 million seven-year term loan maturing July 21, 2023, with a $250 million five-year term loan with an identical expiration date.

The interest spread for the existing $150 million term loan expiring in 2023 has been decreased by 55 basis points by swapping to a lower, fixed interest rate of 2.31% through planned maturity, after realizing interest-rate swap arrangements.

The $100 million of extra proceeds from the expanded term loan will be used to settle amounts outstanding on the unsecured revolving credit facility.

In addition, and subject to lender approval, Washington REIT has the ability to exercise an accordion feature to stretch the aggregate credit facilities to $1.5 billion.

Wells Fargo Bank NA served as administrative agent for the credit facilities. Wells Fargo Securities LLC, KeyBanc Capital Markets Inc., and Capital One NA acted as joint lead arrangers for the revolving credit facility, and Wells Fargo Securities LLC and KeyBanc Capital Markets Inc. served as joint book runners for the revolving credit facility.

KeyBank NA and Capital One NA also served as syndication agents for the revolving credit facility. U.S. Bank NA, SunTrust Bank and PNC Bank NA served as documentation agents for the revolving credit facility.

Additional participants include Citibank NA, Goldman Sachs Bank USA, JPMorgan Chase Bank NA, Morgan Stanley Bank NA, The Bank of New York Mellon and Branch Banking & Trust Co.

Wells Fargo Securities LLC, Capital One and U.S. Bank served as joint lead arrangers and joint book runners for the term loan.

Capital One and U.S. Bank served as syndication agents. Other lenders included Branch Banking & Trust Co., Bank of New York Mellon, PNC Bank and SunTrust Bank.