Easterly Government Properties has closed a new five-year, $200 million senior unsecured term loan facility, replacing a portion of its borrowing structure and adding more flexibility to its balance sheet.
The facility includes an accordion feature that can lift commitments by as much as $50 million, bringing total available capacity to $250 million if conditions are met. The loan matures in June 2031.
The company said it plans to use the proceeds to pay down borrowings under its $400 million unsecured revolving credit facility and for general corporate purposes. That move shifts debt from the revolver to the new term loan and should free up capacity under the revolving line.
Pricing on the new facility is tied to SOFR plus a spread ranging from 1.20% to 1.70%, based on leverage. At the company’s current leverage level, the initial spread is 1.30%.
The transaction adds to Easterly’s financing options at a time when it is looking to support future growth initiatives, according to Chief Financial Officer Allison E. Marino. The market has reacted to these announcements by moving the company's shares -0.06% to a price of $25.145. For more information, read the company's full 8-K submission here.
