American Campus Communities Announces Renewal of its $1.0 Billion Unsecured Revolving Credit Facility
May 13 2021 - 7:13PM
Business Wire
American Campus Communities, Inc. (NYSE: ACC), the nation’s
largest owner and manager of high-quality student housing
properties in the U.S., announced that on May 12, 2021 the company
closed on the renewal of its existing $1.0 billion senior unsecured
revolving credit facility (the “credit facility”) which was
previously scheduled to mature in March 2022.
Among other items, the amended credit facility matures May 12,
2025 and demonstrates the company’s commitment to ESG with
sustainability-linked pricing whereby the borrowing rate improves
if the Company meets certain ESG performance targets each year. The
facility also includes two 6-month extension options and an
accordion feature that allows the company to expand the facility by
up to an additional $500 million, subject to the satisfaction of
certain conditions. Borrowing rates float at a margin over LIBOR
plus an annual facility fee with spreads reflecting current market
terms, which are more favorable than those contained in the prior
facility. Both the margin and the facility fee are priced on a grid
that is tied to the company’s credit rating. Based on the company’s
current Baa2/BBB rating, the annual facility fee is 20 basis
points, and the LIBOR margin is 85 basis points, a reduction of 15
basis points from the prior credit facility.
“We are pleased to have completed the renewal of our credit
facility, which includes a 15 basis point reduction in borrowing
costs and extends the maturity by over three years,” said Daniel
Perry, American Campus Communities CFO. “Additionally, we are proud
to have introduced sustainability-linked pricing, demonstrating our
commitment to ESG, and believe that we are the first U.S. listed
REIT to have included a performance component tied to all three
pillars in Environmental, Social and Governance.”
About American Campus Communities
American Campus Communities, Inc. is the largest owner, manager
and developer of high-quality student housing communities in the
United States. The company is a fully integrated, self-managed and
self-administered equity real estate investment trust (REIT) with
expertise in the design, finance, development, construction
management and operational management of student housing
properties. As of March 31, 2021, American Campus Communities owned
166 student housing properties containing approximately 111,900
beds. Including its owned and third-party managed properties, ACC's
total managed portfolio consisted of 207 properties with
approximately 142,400 beds. Visit www.americancampus.com.
Forward-Looking Statements
In addition to historical information, this press release
contains forward-looking statements under the applicable federal
securities law. These statements are based on management’s current
expectations and assumptions regarding markets in which American
Campus Communities, Inc. (the “Company”) operates, operational
strategies, anticipated events and trends, the economy, and other
future conditions. Forward-looking statements are not guarantees of
future performance and involve certain risks and uncertainties,
which are difficult to predict. These risks and uncertainties that
could cause actual results to differ materially from those
expressed or implied in the forward looking-statements include
those related to the COVID-19 pandemic, about which there are still
many unknowns, including the duration of the pandemic and the
extent of its impact, and those discussed in our filings with the
Securities and Exchange Commission, including our Annual Report on
Form 10-K for the year ended December 31, 2020 under the heading
“Risk Factors” and under the heading “Business - Forward-looking
Statements” and subsequent quarterly reports on Form 10-Q. We
undertake no obligation to publicly update any forward-looking
statements, including our preleasing activity or expected full year
2021 operating results, whether as a result of new information,
future events, or otherwise.
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