Easterly Government amends, upsizes term loan to $200M

Easterly Government Properties has increased its unsecured term loan from $174.5 million to $200 million, providing additional funding for its operations.

The updated loan agreement includes a new accordion feature, allowing for an optional increase in borrowing capacity by an additional $100 million.

The loan maintains its interest structure based on the Secured Overnight Financing Rate (SOFR) with a current spread of 1.45%, linked to Easterly's leverage ratio.

Notable financial institutions involved in the loan arrangement include Citibank, PNC, Wells Fargo, U.S. Bank, and Truist, with Citibank serving as the administrative agent.

Recommendation Rating: Positive Update on Easterly Government Properties Term Loan

Easterly Government Properties, listed on the NYSE under the ticker DEA, has successfully increased its unsecured term loan agreement from an original amount of $174.5 million to $200 million, as announced by the Real Estate Investment Trust (REIT) on Thursday.

Specializing in leasing properties to the U.S. government, the company has also introduced a new accordion feature, which allows for an additional borrowing capacity of $100 million.

The existing term loan, established in 2018, will maintain its interest structure, applying the Secured Overnight Financing Rate (SOFR) alongside a credit spread adjustment of 0.10%, plus a variable spread between 1.20% and 1.70%, contingent on Easterly's leverage ratio. Based on the current leverage ratio, the initial spread has been amended to 1.45%.

The financial institutions involved in this loan arrangement include Citibank N.A., PNC Capital Markets LLC, Wells Fargo Securities LLC, U.S. Bank National Association, and Truist Securities Inc., which acted as joint lead arrangers, joint bookrunners, and syndication agents. Citibank N.A. holds the role of administrative agent for the transaction.