Easterly Government Properties Secures $200M Term Loan

Easterly Government Properties has closed a new five-year, $200 million senior unsecured term loan facility maturing in June 2031, with an accordion feature allowing the company to increase commitments by up to $50 million for a total facility size of $250 million, subject to certain conditions.

The real estate investment trust plans to use the proceeds to repay outstanding borrowings under its $400 million unsecured revolving credit facility and for general corporate purposes.

Borrowings under the new facility will bear interest at SOFR plus a spread ranging from 1.20% to 1.70%, depending on Easterly’s leverage ratio. Based on the company’s current leverage, the initial spread is set at 1.30%.

“We are pleased to expand our capital base with this new term loan facility. The transaction enhances our liquidity profile and supports our ability to efficiently fund future growth initiatives,” said Allison E. Marino, chief financial officer, Easterly Government Properties.

Washington, D.C.-based Easterly is a fully integrated REIT focused on acquiring, developing, and managing Class A commercial properties leased to the U.S. government and its adjacent partners.

U.S. Bank National Association, PNC Capital Markets LLC, and Truist Securities, Inc. served as Joint Bookrunners. U.S. Bank National Association, PNC Capital Markets LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC, served as Joint Lead Arrangers. PNC Bank, National Association served as Administrative Agent, U.S. Bank National Association and Truist Bank, as Syndication Agents, and Wells Fargo Bank, N.A. as Documentation Agent.