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KeyBank Agents $200MM Upsize for Griffin Capital REIT

July 13, 2018, 07:23 AM
Filed Under: Real Estate

Griffin Capital Company, LLC announced on behalf of Griffin Capital Essential Asset REIT II, Inc., the expansion of the REIT’s credit facility from $550 million to $750 million, expanding the availability of flexible and cost-effective capital to enable the company to continue executing its strategic plan and delivering results to shareholders.

KeyBank, National Association serves as administrative agent of the credit facility. Joint lead arrangers and joint bookrunners are KeyBanc Capital Markets, Merrill Lynch, Pierce, Fenner and Smith Incorporated, Capital One, SunTrust Robinson Humphrey, Inc., Wells Fargo Securities, LLC, and U.S. Bank National Association. Other participants include Fifth Third Bank, Associated Bank, National Association and Regions Bank.

“We are pleased to complete this refinancing as it extends the maturity, lowers financing costs and provides us with ongoing flexibility and access to more than $200 million of undrawn borrowing capacity as of the closing date, soundly positioning us for continued growth,” explained Javier Bitar, chief financial officer of the REIT. “We appreciate the support of the premier financial institutions that have elected to partner with us in this credit facility and the confidence they have expressed in our business model and the strength of our financial position.”

The credit facility may be utilized to acquire, finance or re-finance properties, as well as for other corporate purposes. Additionally, several important terms were modified to improve funding capacity and to reduce financing costs.

Post renewal, the term loan portion of the credit facility matures on June 28, 2023 and the revolver portion matures on June 28, 2022, but may be extended for one additional year by the REIT upon the satisfaction of certain conditions. At the option of the REIT’s operating partnership, draws under the facility bear interest at per annum rates equal to (1) for Eurodollar Borrowings, the Adjusted LIBO Rate plus a margin ranging from 1.25 percent to 2.20 percent based on the REIT’s consolidated leverage ratio or (2) for Alternate Base Rate Borrowings, the greater of KeyBank, National Association’s prime rate or the Federal Funds Effective Rate plus 0.50 percent, plus a margin ranging from 0.25 percent to 1.20 percent based on the REIT’s consolidated leverage ratio.

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