Equity Residential Closes $543 Million Secured Loan
Company Has $2.33 Billion in Liquidity to Meet Debt and Development Funding Needs into 2011
CHICAGO, Dec 23, 2008 (BUSINESS WIRE) -- Equity Residential (NYSE: EQR) today announced that the company closed a
$543 million secured loan with Fannie Mae (NYSE: FNM), which was
originated by Wells Fargo (NYSE: WFC). The loan is interest only and
matures in eight years with the first seven years fixed and the final
year at a floating rate of interest. The loan, which is collateralized
with nineteen assets, has an all-in effective cost to the company of
approximately 6%. The company currently has approximately $1.0 billion
of unrestricted cash, inclusive of these loan proceeds, and
approximately $1.33 billion available on its unsecured revolving credit
facility. This loan is a continuation of the company's strategy to
proactively address its debt maturities and development funding needs.
The company now has sufficient liquidity, between its line of credit and
cash on hand, to meet these needs well into 2011.
Equity Residential is an S&P 500 company focused on the acquisition,
development and management of high quality apartment properties in top
U.S. growth markets. Equity Residential owns or has investments in 552
properties totaling 148,115 units in 23 states and the District of
Columbia. For more information on Equity Residential, please visit our
website at www.equityresidential.com.
Forward-Looking Statements
In addition to historical information, this press release contains
forward-looking statements and information within the meaning of the
federal securities laws. These statements are based on current
expectations, estimates, projections and assumptions made by management.
While Equity Residential's management believes the assumptions
underlying its forward-looking statements are reasonable, such
information is inherently subject to uncertainties and may involve
certain risks, including, without limitation, changes in general market
conditions, including the rate of job growth and cost of labor and
construction material, the level of new multifamily construction and
development, competition and local government regulation. Other risks
and uncertainties are described under the heading "Risk Factors" in our
Annual Report on Form 10-K and subsequent periodic reports filed with
the Securities and Exchange Commission (SEC) and available on our
website, www.equityresidential.com.
Many of these uncertainties and risks are difficult to predict and
beyond management's control. Forward-looking statements are not
guarantees of future performance, results or events. Equity Residential
assumes no obligation to update or supplement forward-looking statements
that become untrue because of subsequent events.
SOURCE: Equity Residential
Equity Residential
Marty McKenna (312) 928-1901
Copyright Business Wire 2008
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