Equity Residential enters into $2.5 billion multi-currency revolver

By Sarah Lizee

Olympia, Wash., Nov. 4 – Equity Residential said its operating partnership, ERP Operating LP, has entered into a $2.5 billion multi-currency revolving credit facility, replacing its existing $2 billion credit agreement set to mature on Jan. 10, 2022.

The new facility matures on Nov. 1, 2024, subject to extension for additional one or two-year periods at the request of the operating partnership, provided that lender consent and certain customary conditions are met, according to an 8-K filing with the Securities and Exchange Commission.

The facility may be increased by an additional $750 million through more revolving commitments or one or more term loans.

Interest is currently Libor plus 77.5 basis points. The spread ranges from 75 bps to 145 bps.

The facility fee is currently 12.5 bps and can range from 10 bps to 30 bps.

The interest rate and facility fees are based on the operating partnership’s long-term unsecured credit ratings.

A total of 22 lenders participated in the facility including BofA Securities, Inc., JPMorgan Chase Bank, NA and Wells Fargo Securities, LLC as joint bookrunners and joint lead arrangers, and Barclays Bank plc, Citibank, NA, Deutsche Bank Securities, Inc., Morgan Stanley Bank, NA, Royal Bank of Canada and U.S. Bank NA as joint lead arrangers and co-syndication agents. Bank of America is the administrative agent.

Chicago-based Equity Residential acquires, develops and manages apartment properties.

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