Duke Realty closes $1.2 billion renewed revolver, extends term loan

By Marisa Wong

Madison, Wis., Oct. 9 – Duke Realty Corp. said it closed a $1.2 billion unsecured revolving credit facility that replaces its existing $850 million facility, which was set to mature in December 2015.

This renewed facility matures in January 2019 with two six-month extension options and can be upsized to $1.6 billion.

Borrowings under the new facility will bear interest at Libor plus 105 basis points, subject to a pricing grid for changes in the company’s credit rating. The interest rate under the old facility was Libor plus 125 bps.

In tandem with closing the revolver, the company extended the maturity of its $250 million unsecured term loan to January 2019 from May 2018.

The renewed term loan bears interest at Libor plus 115 bps and has a one-year extension option. The previous term loan had a rate of Libor plus 135 bps and did not have an extension option.

“Our expanded facility at a lower cost with over five years of term further enhances our financial flexibility and is a testament to the strength of our balance sheet,” Mark Denien, chief financial officer, said in a press release.

“We are very pleased with the strong demand and continued support from the high caliber financial institutions who participated in our credit facility.”

JPMorgan Securities LLC and Wells Fargo Securities, LLC are the joint lead arrangers and joint bookrunners, with JPMorgan Chase Bank, NA as administrative agent and Wells Fargo Bank, NA as syndication agent. Morgan Stanley Senior Funding, Inc., PNC Bank, Regions Bank, Royal Bank of Canada, SunTrust Bank, Bank of Nova Scotia and U.S. Bank NA are documentation agents.

Other participating lenders include Associated Bank, NA, Barclays Bank plc, Branch Banking and Trust Co. (BB&T), Citibank NA, Northern Trust Co., and UBS AG, Stamford Branch.

Based in Indianapolis, Duke Realty owns and operates industrial and office space.

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