CommonWealth REIT, Newton, Mass., has obtained a $750 million unsecured revolving bank credit facility to replace a $750 million unsecured revolving bank credit facility that was set to mature on Aug. 22.
The maturity date of the new facility is Aug. 8, 2013, and includes a borrower's option to extend the facility for one year. The new facility also includes a feature under which the maximum borrowing may be increased to up to $1.5 billion in certain circumstances.
Interest is Libor plus 200 basis points, but could be adjusted based on changes to CommonWealth REIT's ratings.
Wells Fargo Securities LLC and Banc of America Securities LLC acted as joint lead arrangers and joint bookrunners for the new facility. The number of participating banks in the facility increased from 26 to 28 institutions. These include Wells Fargo Bank as the administrative agent, Bank of America as the syndication agent and documentation agents RBC Capital Markets, Regions Bank and Sumitomo Mitsui Banking Corp.
