Washington REIT Enters Into New, Expanded Four-Year Credit Facility

WASHINGTON, June 23, 2015 /PRNewswire/ -- Washington REIT (Washington Real Estate Investment Trust --NYSE: WRE), a leading owner of commercial and multifamily properties in the Washington, DC area, has entered into a new and expanded $600 million revolving unsecured credit facility with Wells Fargo Bank National Association, as administrative agent, KeyBank National Association and a syndicate of other lenders.

The new credit facility will have a four-year term ending on June 22, 2019, with two six-month extension options.  The interest rate under the new credit facility will be based on a spread over LIBOR determined by Washington REIT's then-current unsecured debt rating (the current spread over LIBOR is 100 basis points).  In addition, and subject to lender approval, Washington REIT has the ability under the new credit facility to exercise an accordion feature to increase the size of the facility to $1 billion. The new credit facility will replace Washington REIT's two existing credit facilities, a $400 million syndicated credit facility led by Wells Fargo Bank National Association and a $100 million credit facility provided by SunTrust Bank, N.A.

Wells Fargo Securities, LLC and KeyBanc Capital Markets Inc. served as joint lead arrangers and joint bookrunners for the new credit facility.  KeyBank National Association served as syndication agent. Royal Bank of Canada and SunTrust Bank, N.A. served as documentation agents.  Additional participants include Citibank, N.A., Goldman Sachs Bank USA, JPMorgan Chase Bank, N.A., Morgan Stanley Bank, N.A., UBS AG, Stamford Branch, The Bank of New York Mellon, Capital One Bank National Association, U.S. Bank National Association and Branch Bank and Trust Company.

"We thank our team of lenders for their support of Washington REIT and its business plan.  Our lenders have provided an expanded facility size in comparison to our prior facilities, improved financial covenants, a lowered interest rate spread and, most importantly, a long-term commitment to the growth and success of our company. We know their support of Washington REIT will further our ability to execute our value-add investment model," said Stephen E. Riffee, Executive Vice President and Chief Financial Officer of Washington REIT.

In other administrative matters, Washington REIT recently filed two new shelf registration statements, one for ongoing debt and equity capital issuances and the other for Washington REIT's dividend reinvestment and direct investment plan.  The new shelf registration statements replaced existing registration statements that were due to expire.  Washington REIT also established a new $200 million at-the-market (ATM) equity offering program to replace its existing $250 million ATM program (of which $36.5 million had been utilized) that expired on June 22, 2015. The new ATM program consists of four separate equity distribution agreements with Wells Fargo Securities, LLC, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc. and RBC Capital Markets, LLC.  Any future issuances under the new ATM program will be dependent on the share price and the equity capital needs of Washington REIT at the time of the proposed future issuance.

Washington REIT is a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the greater Washington metro region. Washington REIT owns a diversified portfolio of 55 properties totaling approximately 7 million square feet of commercial space and 2,826 residential units, and land held for development. These 55 properties consist of 25 office properties, 17 retail centers and 13 multifamily properties. Washington REIT shares are publicly traded on the New York Stock Exchange (NYSE: WRE).

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors include, but are not limited to, the potential for federal government budget reductions, changes in general and local economic and real estate market conditions, the timing and pricing of lease transactions, the availability and cost of capital, fluctuations in interest rates, tenants' financial conditions, levels of competition, the effect of government regulation, the impact of newly adopted accounting principles, and other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2014 Form 10-K and subsequent quarterly reports on Form 10-Q. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

This communication is not an offer to sell our common shares, nor is it a solicitation of an offer to buy our common shares.                                                               

SOURCE Washington REIT

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