Cali Realty Corporation Announces Completion of $400 Million Unsecured Revolving Credit Facility
08/08/1997 Category: Financial
CRANFORD, NJ--August 8, 1997--Cali Realty Corporation (NYSE:CLI) today announced the completion of a new $400 million unsecured revolving credit facility agreement with a group of 13 lenders led by Fleet National Bank. The facility has a three-year term with a one-year option.
"We're pleased by Fleet's vote of confidence in Cali's future with this long-term unsecured credit arrangement," commented Barry Lefkowitz, Chief Financial Officer. "We believe this increased credit availability will allow us greater flexibility to take advantage of numerous opportunities and provide additional working capital as needed," he added.
Under the terms of the agreement, the new credit facility will carry an interest rate equal to LIBOR plus 125 basis points. Based upon the Company's achievement of an investment grade long term unsecured debt rating, the interest rate will be reduced, on a sliding scale, and a competitive bid option will become available.
Cali plans to utilize the new facility to finance the Company's future growth plans, for general working capital needs, and for any other future debt repayments. In conjunction with the closing of the new facility, Cali retired two of the Company's existing secured revolving credit facilities.
The lending group for the new credit line includes: Fleet National Bank, The Chase Manhattan Bank, and Bankers Trust Company, as agents; PNC Bank, N.A., Bank of America National Trust and Savings Association, Commerzbank, and First National Bank of Chicago, as co-agents; and Keybank, Summit Bank, Crestar Bank, Mellon Bank, N.A., Signet Bank, and Kredeitbank NV.
Combined with its existing $80 million credit facility with Prudential Realty Funding Corporation, Cali's revolving credit lines currently aggregate $480 million, compared to the Company's previous total of $225 million. The Company currently has $168 million of borrowings outstanding under its facilities.
Cali currently has 71 unencumbered properties totaling 4.9 million square feet, representing approximately 41% of the Company's portfolio.
Cali Realty Corporation is a fully-integrated, self-administered, self-managed real estate investment trust (REIT) providing leasing, management, acquisition, development, construction and tenant-related services for its portfolio. Cali owns 130 properties, primarily office and office/flex buildings, totaling approximately 12 million square feet. All of the properties are located in New Jersey, New York, Pennsylvania, and Connecticut. Further information on Cali Realty Corporation is available on the Company's website at http://www.calirealty.com.
Certain information discussed in this press release may constitute forward-looking statements within the meaning of the Federal Securities law. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office, office/flex and industrial/warehouse properties in the northeast; interest rate levels; the availability of financing; and other risks associated with the development and acquisition of properties, including risks that the development may not be completed on schedule, that the tenants will not take occupancy or pay rent, or that development or operating costs may be greater than anticipated. For further information on factors which could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q, reports on Form 8-K, and annual reports on Form 10-K.