COPT Amends Its $800 Million Line of Credit and Term Loans
COPT Amends Its $800 Million Line of Credit and Term Loans
COLUMBIA, Md.--(BUSINESS WIRE)-- Corporate Office Properties Trust (COPT) (NYS: OFC) , and its operating partnership, Corporate Office Properties, L.P. (COPLP and, together with COPT, the "Company"), announced that, effective July 16, 2013, the Company amended the terms of its $800 million line of credit (the "Credit Facility") to: (1) extend the maturity date from September 1, 2014, to July 14, 2017 plus a one-year extension option; and (2) lower the interest rate spread over 30-day LIBOR (LIBOR) to 130 basis points. The Credit Facility also carries a facility fee of 30 basis points. The interest rate and facility fee are subject to adjustment based upon COPLP's unsecured debt ratings.
Also effective July 16, 2013, the Company amended the terms of its $300 million and $250 million term loan agreements (the "Term Loans") to grant additional extension options and lower the interest spread over LIBOR as follows:
- The $300 million Term Loan continues to have a maturity date of September 1, 2015, but now has two one-year extension options to 2017 and bears interest at a new spread to LIBOR of 150 basis points.
- The $250 million Term Loan continues to have a maturity date of February 14, 2017, but now provides for a one-year extension option to 2018 and bears interest at a new spread to LIBOR of 150 basis points.
The interest rates on the Term Loans are subject to adjustment based upon COPLP's unsecured debt ratings.
COPT is an office real estate investment trust (REIT) that focuses primarily on serving the specialized requirements of U.S. Government agencies and defense contractors, most of whom are engaged in defense information technology and national security-related activities. The Company generally acquires, develops, manages and leases office and data center properties concentrated in large office parks primarily located near knowledge-based government demand drivers and/or in targeted markets or submarkets in the Greater Washington, DC/Baltimore region. As of March 31, 2013, the Company's consolidated portfolio consisted of 210 office properties totaling 19.1million rentable square feet. COPT is an S&P MidCap 400 company.
This press release may contain "forward-looking" statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company's current expectations, estimates and projections about future events and financial trends affecting the Company.Forward-looking statements can be identified by the use of words such as "may," "will," "should," "could," "believe," "anticipate," "expect," "estimate," "plan" or other comparable terminology.Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate.Accordingly, the Company can give no assurance that these expectations, estimates and projections will be achieved.Future events and actual results may differ materially from those discussed in the forward-looking statements.
Important factors that may affect these expectations, estimates, and projections include, but are not limited to:
- general economic and business conditions, which will, among other things, affect office property and data center demand and rents, tenant creditworthiness, interest rates, financing availability and property values;
- adverse changes in the real estate markets including, among other things, increased competition with other companies;
- governmental actions and initiatives, including risks associated with the impact of a government shutdown or budgetary reductions or impasses, such as a reduction in rental revenues, non-renewal of leases, and/or a curtailment of demand for additional space by the Company's strategic customers;
- the Company's ability to borrow on favorable terms;
- risks of real estate acquisition and development activities, including, among other things, risks that development projects may not be completed on schedule, that tenants may not take occupancy or pay rent or that development or operating costs may be greater than anticipated;
- the Company's ability to sell properties included in its Strategic Reallocation Plan;
- risks of investing through joint venture structures, including risks that the Company's joint venture partners may not fulfill their financial obligations as investors or may take actions that are inconsistent with the Company's objectives;
- changes in the Company's plans for properties or views of market economic conditions or failure to obtain development rights, either of which could result in recognition of significant impairment losses;
- the Company's ability to satisfy and operate effectively under Federal income tax rules relating to real estate investment trusts and partnerships;
- the Company's ability to achieve projected results;
- the dilutive effects of issuing additional common shares; and
- environmental requirements.
The Company undertakes no obligation to update or supplement any forward-looking statements. For further information, please refer to the Company's filings with the Securities and Exchange Commission, particularly the section entitled "Risk Factors" in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2012.
KEYWORDS: United States North America Maryland
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