EdR Completes $375 Million Senior Unsecured Revolving Credit Facility
Increases Financial Capacity and Lowers Overall Cost of Capital
MEMPHIS, Tenn.--(BUSINESS WIRE)-- EdR (NYS: EDR) , one of the nation's largest developers, owners and managers of collegiate housing, announced today the closing of a restatement and amendment to its revolving credit facility. The credit facility will increase in size to $375 million from $175 million. This facility also contains an accordion feature which allows EdR to increase the size of the credit facility to $500 million.
"The conservative management of our capital structure has provided a strong balance sheet, allowing us to secure additional capacity on our credit facility and reduce our overall cost of capital," said Randy Brown, EdR's chief financial officer. "We value our lending partners' continued support, which facilitates our strategy, enhances our financial flexibility and allows us to finance future growth at advantageous rates."
The credit facility has an initial term of four years with one 12-month extension available under certain conditions. At the borrower's option, the interest rate per annum is equal to a base rate or LIBOR plus an applicable margin ranging from 145 to 205 basis points, depending upon leverage.
The transaction was led by KeyBanc Capital Markets with PNC Capital Markets LLC, RBC Capital Markets and Regions Capital Markets also acting as Co-Bookrunners and Co-Lead Arrangers. KeyBank National Association is acting as Administrative Agent with the remaining lender group comprising PNC Bank National Association, Regions Bank, Royal Bank of Canada, Bank of America, N.A., U.S. Bank National Association, First Tennessee Bank, N.A. and Metropolitan Bank.
EdR (NYS: EDR) is one of America's largest owners, developers and managers of collegiate housing. A self-administered and self-managed real estate investment trust, EdR owns or manages 67 communities in 24 states with more than 37,000 beds within more than 12,000 units. For more information, please visit the company's Web site at www.EdRtrust.com.
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Statements about the company's business that are not historical facts are "forward-looking statements." Forward-looking statements are based on current expectations. You should not rely on our forward-looking statements because the matters they describe are subject to known and unknown risks and uncertainties that could cause the company's future results, performance, or achievements to differ significantly from the results, performance, or achievements expressed or implied by such statements. Such risks are set forth under the captions "Item 1A. Risk Factors" and "Forward-Looking Statements" in our annual report on Form 10-K and under the caption "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" (or similar captions) in our quarterly reports on Form 10-Q, and as described in our other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the dates on which they are made, and the company undertakes no obligation to update publicly or revise any guidance or other forward-looking statement, whether as a result of new information, future developments, or otherwise.
KEYWORDS: United States North America Tennessee
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