TIER REIT Announces Credit Facility Increase
March 15 2016 - 5:00PM
Business Wire
Completes Conversion to Unsecured
TIER REIT, Inc. (NYSE:TIER), a Dallas-based real estate
investment trust, announced today that it has increased the size of
its credit facility by $110 million, from $750 million to $860
million. This includes a $60 million increase in the revolving
portion of the facility, from $225 million to $285 million, as well
as a $50 million increase in the five-year term loan. The net
proceeds from the term loan funding will be used to pay down
existing debt and for general corporate purposes.
Additionally, the facility was successfully converted from
secured to unsecured as a result of the company’s financial
performance during the prior year.
“Consistent with our announced strategic plan, we are
progressing toward our goal of reducing our overall leverage,
further lowering our borrowing costs, and extending debt maturities
as we position the company to ultimately seek an investment grade
debt rating,” said Dallas Lucas, Chief Financial Officer. “We
believe increasing our financial flexibility will be an integral
part of our long-term growth objectives.”
Wells Fargo Securities, LLC and JPMorgan Chase Bank, N.A. are
the joint lead arrangers of the credit facility.
About TIER REIT, Inc.
TIER REIT, Inc. is a self-managed, Dallas-based real estate
investment trust focused on maximizing total return to stockholders
through the combination of stock appreciation and income derived
from a sustainable distribution. TIER REIT’s investment strategy is
to acquire, develop and operate a portfolio of best-in-class office
properties in select U.S. markets that consistently lead the nation
in both population and office-using employment growth. For
additional information regarding TIER REIT, please visit
www.tierreit.com or call 972.483.2400.
Forward-Looking Statements
This press release contains forward-looking statements relating
to the business and financial outlook of TIER REIT, Inc. that are
based on current expectations, estimates, forecasts and projections
and are not guarantees of future performance. Statements contained
herein may be impacted by a number of risks and uncertainties,
including the company’s ability to rent space on favorable terms,
its ability to address debt maturities and fund its capital
requirements, the value of its assets, its anticipated capital
expenditures, and other matters. Actual results may differ
materially from those expressed in these forward-looking
statements, and you should not place undue reliance on any such
statements. A number of important factors could cause actual
results to differ materially from the forward-looking statements
contained in this document, as well as other factors described in
the Risk Factors section of TIER REIT, Inc.’s Annual Report on Form
10-K for the year ended December 31, 2015. Forward-looking
statements in this press release speak only as of the date on which
such statements were made, and we undertake no obligation to update
any such statements that may become untrue because of subsequent
events.
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version on businesswire.com: http://www.businesswire.com/news/home/20160315006696/en/
TIER REIT, Inc.Scott McLaughlin,
972-483-2465smclaughlin@tierreit.com
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