Alexandria Real Estate Equities Inc.
09/19/2024 | Press release | Distributed by Public on 09/19/2024 14:12
Financial Obligation Form 8 K
Item 1.01. Entry into a Material Definitive Agreement
The Credit Agreement
On July 18, 2024, Alexandria Real Estate Equities, Inc., a Maryland corporation (the "Company"), and its subsidiary, Alexandria Real Estate Equities, L.P., a Delaware limited partnership (the "Operating Partnership"), entered into an escrow agreement (the "Escrow Agreement") with Citibank, N.A., as administrative agent (the "Administrative Agent"), certain lenders (the "Lenders") and O'Melveny & Myers LLP, as escrow agent (the "Escrow Agent"), pursuant to which the Company, the Operating Partnership, the Administrative Agent, and the Lenders, intending to enter into a third amended and restated credit agreement in the form attached as an exhibit thereto (the "Third Amended Credit Agreement"), submitted their signature pages to the Third Amended Credit Agreement to be held by the Escrow Agent in escrow. The terms and conditions of the Escrow Agreement were satisfied on September 19, 2024, and on that date the Third Amended Credit Agreement was deemed executed and became effective.
The Third Amended Credit Agreement replaces the Company's Second Amended and Restated Credit Agreement, dated as of June 28, 2023. Citibank, N.A. serves as administrative agent; Citibank, N.A., BofA Securities, Inc., JPMorgan Chase Bank, N.A., Goldman Sachs Bank USA, RBC Capital Markets, The Bank of Nova Scotia, Mizuho Bank, Ltd., Barclays Bank PLC, Sumitomo Mitsui Banking Corporation, TD Bank, N.A., and U.S. Bank National Association serve as joint lead arrangers; and Citibank, N.A., BofA Securities, Inc., JPMorgan Chase Bank, N.A., Goldman Sachs Bank USA, and RBC Capital Markets serve as joint bookrunners under the Third Amended Credit Agreement. The Third Amended Credit Agreement provides for, among other things, a $5 billion unsecured senior revolving credit facility (the "Revolving Credit Facility") and an accordion option to increase aggregate commitments under the Third Amended Credit Agreement by up to an additional $1 billion. Borrowings under the Revolving Credit Facility will bear interest at a "Floating Rate," "Daily RFR Rate," or "Base Rate" as specified in the Third Amended Credit Agreement, plus, in any case, a margin specified in the Third Amended Credit Agreement. The margin at closing applicable to loans based on the Floating Rate and Daily RFR is 0.855%, including a credit spread adjustment of 10 basis points and a Sustainability Margin Adjustment (as specified in the Third Amended Credit Agreement) reduction of two basis points.
The Third Amended Credit Agreement extends the maturity date for the Revolving Credit Facility to January 22, 2030, provided that the Company exercises its rights to extend the maturity date twice by an additional six months for each exercise upon satisfaction of certain conditions.
The foregoing summary of the Third Amended Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Third Amended Credit Agreement, a copy of which will be filed as an exhibit to the Company's annual report on Form 10-Q for the quarterly period ended September 30, 2024.