SL Green Realty Corp.
) disclosed the expansion and extension of its unsecured credit
facility. The move is aimed at enhancing its financial
flexibility and gain competitive advantage.
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In particular, the company modified and increased the term loan
part of its unsecured corporate credit facility by $383 million
to $783 million. Furthermore, the cost of the term loan has been
lowered to 140 basis points over LIBOR.
The term loan's maturity date has also been extended to June
2019. Notably, a $1.2 billion revolving line of credit is also
included in the facility, which will mature in March 2018,
inclusive of the company's total one-year as-of-right extension
We believe the move to be a strategic fit as it not only offered
reduction in cost of funds but also addition terms, thereby
enhancing the company's financial flexibility. Notably, the
company has been seeking to tap opportunities to boost its
overall portfolio quality, including the acquisition of premium
assets and divestiture of non-core ones.
Recently, SL Green disclosed a deal with Ivanhoe Cambridge to buy
the latter's stake in 388-390 Greenwich Street properties. The
consolidated investment interest is valued at $1.585 billion.
With the transaction, SL Green will obtain the full ownership of
the 2.6 million square foot headquarters of
) in Tribeca, a neighborhood in lower Manhattan, New York City.
SL Green currently carries a Zacks Rank #3 (Hold). Investors
interested in the REIT industry may consider stocks like
Cousins Properties Incorporated
). Both stocks carry a Zacks Rank #2 (Buy).