Gramercy Lands $400M Syndicated Term Loan

Capital One also was the sole lead arranger, sole book runner and administrative agent. The loan has replaced a previous $175 million term loan that was closed in December 2015.

Jon Clark, CFO, Gramercy Property Trust
Jon Clark, CFO, Gramercy Property Trust

Gramercy Property Trust is the recipient of a new $400 million, 5.25-year, senior unsecured term loan. Capital One was the loan’s administrative agent, sole lead arranger and sole bookrunner.

The loan has replaced a previous $175 million term loan that was closed in December 2015 and now has been amended and restated as a $400 million term loan. Capital One also was the sole lead arranger, sole book runner and administrative agent on that original loan, a Capital One spokesperson told Commercial Property Executive.

The amended loan is coterminous with the original loan and carries a lower interest rate, Gramercy CFO Jon Clark told CPE.

After Gramercy announced a series of significant acquisitions in August 2017, Capital One approached the company with a range of term loan financing options that would let it reduce borrowings from its revolving credit facility while providing a longer-term capital plan. “We saw an opportunity for the company to increase its available liquidity while reducing its term loan interest expense,” John Szeman, senior vice president, REIT Corporate Banking at Capital One, said in a prepared statement. “This transaction strengthens our balance sheet and increases our capacity to pursue our acquisition strategy,” added Clark. 

John Szeman
John Szeman

In addition to Capital One, the participating institutions in the new loan are TD Bank, U.S. Bank, Mitsubishi UFG Financial Group, SunTrust Bank, The Bank of Nova Scotia, and The Huntington National Bank, according to the Capital One spokesperson.

major sales and acquisitions, new JV

In July, Gramercy Property Europe completed the sale of all of its assets, an approximately $1.1 billion deal involving 11.6 million square feet that netted Gramercy Property Trust roughly $104 million.

And in late August, Gramercy announced the $479 million acquisition of a 41-property, 7.8 million-square-foot warehouse portfolio. The properties are primarily in Atlanta, Chicago and Memphis, with other buildings in Columbus, Houston and Dallas. Also in August, Gramercy Property Trust announced a new joint venture, a major partnership with an undisclosed sovereign investor. The JV will focus on newly constructed e-commerce distribution facilities.

One of the targets is a seven-building portfolio of newer Class A bulk distribution properties of 700,000 to 1.5 million square feet, from California to Texas to Florida to the Northeast. The sale price reportedly is $642 million.

Photos courtesy of Gramercy Property Trust