Elme Communities Announces New $500 Million Credit Facility
Rhea-AI Summary
Elme Communities (NYSE: ELME), a multifamily owner and operator, has announced the establishment of a new $500 million credit facility, replacing its prior revolving credit facility due to mature in August 2025. This new facility, effective from July 11, 2024, has a four-year term ending on July 10, 2028, and includes two 6-month extension options. It also features an accordion mechanism offering an additional $500 million capacity. The initial interest rate is set at adjusted daily SOFR plus 85 basis points, subject to Elme’s credit ratings. Steven Freishtat, Executive Vice President and CFO, highlighted the facility's role in strengthening liquidity and optimizing costs. Wells Fargo Bank serves as the administrative agent, with multiple financial institutions, including Wells Fargo Securities and KeyBanc Capital Markets, acting as joint lead arrangers and bookrunners.
Positive
- Elme Communities secured a $500 million credit facility, enhancing financial flexibility.
- The new facility extends the maturity to July 10, 2028, improving long-term liquidity.
- The facility includes an additional $500 million capacity through an accordion feature, enabling further growth.
Negative
- The initial interest rate is based on adjusted daily SOFR plus a margin of 85 basis points, which could vary according to Elme’s credit ratings.
News Market Reaction – ELME
In the trading session that priced this news, ELME declined 0.50%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
BETHESDA, Md., July 11, 2024 (GLOBE NEWSWIRE) -- Elme Communities (NYSE: ELME), a multifamily owner and operator, announced today that it has entered into a new
“We are pleased with the successful completion of our credit facility recast which extends our strong liquidity position and optimizes cost,” said Steven Freishtat, Executive Vice President and Chief Financial Officer of Elme Communities. “We thank our team of lenders for their support and confidence in the growth and success of our company.”
Wells Fargo Bank, National Association serves as administrative agent for the credit facility. Wells Fargo Securities, LLC, KeyBanc Capital Markets Inc., PNC Capital Markets LLC, TD Bank, N.A. and Truist Securities Inc. served as joint lead arrangers, and Wells Fargo Securities, LLC and KeyBanc Capital Markets Inc. served as joint bookrunners. KeyBank National Association also served as syndication agent for the revolving credit facility. Capital One, National Association, PNC Bank, National Association, TD Bank, N.A. and Truist Bank served as documentation agents for the revolving credit facility. Additional participants include Goldman Sachs Bank USA and Associated Bank, National Association.
About Elme Communities
Elme Communities is committed to elevating what home can be for value-oriented renters by providing a higher level of quality, service, and experience. The company is a multifamily real estate investment trust that owns and operates approximately 9,400 apartment homes in the Washington, DC metro and the Sunbelt, and owns approximately 300,000 square feet of commercial space. Focused on providing quality, affordable homes to a deep, solid, and underserved base of mid-market demand, Elme Communities is building long-term value for shareholders.
Contact:
Investor Relations
Amy Hopkins
202-774-3253
ahopkins@elmecommunities.com
