SL Green Realty Corp
), a real estate investment trust (REIT), has recently increased
its erstwhile $1.5 billion revolving credit facility to $1.6
billion. Besides increasing the borrowing capacity, the new
credit facility reduced the borrowing costs and extended the debt
Wells Fargo Securities, LLC - part of
Wells Fargo & Company
); J.P. Morgan Securities LLC - part of
JPMorgan Chase & Co
) and Deutsche Bank Securities Inc.- part of
Deutsche Bank AG
) acted as joint book running managers for the transaction.
The new facility consists of a $1.2 billion revolving line of
credit and a $400 million term loan, which carries interest at
145 basis points over LIBOR and 165 basis points over LIBOR,
respectively. The new facility is scheduled to mature in March
2018 and includes an accordion feature by virtue of which the
company has a one-year extension option on the revolving line of
The transaction provides additional liquidity and enhances
financing flexibility. Moving forward, the strategic move could
help seize favorable investment opportunities which in turn are
expected to boost top-line growth.
During the third quarter of 2012, SL Green closed on a $175.0
million financing with a 1-year term and a 1-year extension
option. This facility bears interest at 300 basis points
SL Green Realty primarily acquires, owns, repositions and manages
Manhattan commercial properties. As of September 30, 2012, SL
Green owned interests in 77 Manhattan properties totaling more
than 39.3 million square feet. This included ownership interests
in 27.5 million square feet of commercial properties.
SL Green Realty currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We have a long-term
Neutral recommendation on the stock.
DEUTSCHE BK AG (DB): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
SL GREEN REALTY (SLG): Free Stock Analysis
WELLS FARGO-NEW (WFC): Free Stock Analysis
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