“ESRT Secures $715M Credit Facility for Future Growth”

"ESRT Secures $715M Credit Facility for Future Growth"

Empire State Realty Trust, Inc. has recently announced a new credit facility worth $715 million through its operating partnership, Empire State Realty OP, L.P. This facility includes a revolving credit line of $620 million and a term loan of $95 million to replace existing facilities that were set to mature in March 2025.

The maturity date for both the revolving credit and term loan has been extended to March 2029 with optional extension periods available. The initial interest rates are tied to SOFR (Secured Overnight Financing Rate), starting at SOFR plus 130 basis points for the revolving credit and SOFR plus 150 basis points for the term loan.

One noteworthy feature of this facility is its sustainability-linked pricing mechanism which offers annual incentives based on benchmark achievements. BofA Securities, Inc., Wells Fargo Securities LLC, JPMorgan Chase Bank N.A., U.S. Bank National Association, Bank of Montreal and Goldman Sachs Bank USA have all played key roles in arranging this credit facility.

This announcement marks an important development for ESRT as it secures significant funding while also incorporating sustainability goals into their financing strategy.

About the Publisher:
Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax and REVVED Up Accounting. In addition, Steve founded Madison Avenue Technology. With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.

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