VANCOUVER, March 19, 2018 /PRNewswire/ -- City Office REIT, Inc. (NYSE: CIO) ("City Office" or the "Company") announced today that it has replaced its existing secured revolving credit facility with a new unsecured revolving credit facility (the "Unsecured Credit Facility"). The Unsecured Credit Facility increases the Company's borrowing capacity to $250 million and contains an accordion feature allowing for potential borrowing capacity of up to $500 million, subject to certain terms and conditions.
The Unsecured Credit Facility has a maturity date of March 2022 and provides for one twelve-month extension option. Borrowings under the Unsecured Credit Facility bear interest on the outstanding principal at LIBOR plus 1.40% to 2.25% depending on total leverage.
The Unsecured Credit Facility was led by KeyBank National Association as Administrative Agent and was arranged by KeyBanc Capital Markets Inc. The other lenders included Raymond James Bank, N.A., Royal Bank of Canada, BMO Harris Bank N.A. and Fifth Third Bank.
"We are pleased to be making a significant step forward in terms of the Company's capital flexibility and liquidity," said Tony Maretic, the Company's Chief Financial Officer. "The new facility allows us to more efficiently pursue our growth opportunities, reduce our borrowing costs and strengthen our balance sheet. We greatly appreciate the continued support from our expanding banking relationships."
About City Office REIT, Inc.
City Office REIT is an internally-managed real estate company focused on acquiring, owning and operating high-quality office properties located in leading markets in the Southern and Western United States. City Office currently owns or has an interest in 4.6 million square feet of office properties. The Company has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements that are not statements of historical facts are, or may be deemed to be, forward-looking statements. These factors include, but are not limited to, the Company's ability to acquire additional properties on the terms and timing it expects, if at all, and the Company's projected cost of capital. These and other material risks are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 and any other documents filed by the Company from time to time, which are available from the Company and from the SEC, and you should read and understand these risks when evaluating any forward-looking statement. The Company does not have any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.
City Office REIT, Inc.
Anthony Maretic, CFO
SOURCE City Office REIT, Inc.