Easterly (NYSE: DEA) closes $200M term loan to repay revolver
Rhea-AI Filing Summary
Easterly Government Properties, Inc. entered into a new senior unsecured term loan agreement providing a $200 million term loan with an accordion feature allowing increases up to $250 million. The facility will mature in June 2031 and bears interest at SOFR plus a margin ranging from 1.20% to 1.70% based on the company’s leverage ratio, with an initial spread of 1.30%.
The company plans to use net proceeds to repay borrowings under its unsecured $400 million revolving credit facility and for general corporate purposes, which reshapes its debt mix while maintaining liquidity. Easterly also executed an eleventh amendment to its 2016 term loan agreement to remove the credit spread adjustment on SOFR-based borrowings, aligning terms with the new facility.
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Insights
New $200M SOFR term loan refinances revolver debt and extends maturity to 2031.
Easterly Government Properties added a $200 million senior unsecured term loan with an accordion up to $250 million, maturing in June 2031. Pricing is SOFR plus a 1.20%-1.70% spread tied to its leverage ratio, initially at 1.30%.
The company intends to use proceeds to repay borrowings on its unsecured $400 million revolving credit facility and for general corporate purposes. This shifts a portion of its debt from short-term revolving borrowings to longer-dated term financing while keeping the structure unsecured.
The eleventh amendment to the 2016 term loan removes the SOFR credit spread adjustment, matching the new facility’s approach. Subsequent disclosures in periodic reports can clarify how this debt mix affects interest expense, leverage metrics and covenant headroom over time.
8-K Event Classification
Key Figures
Key Terms
senior unsecured term loan financial
accordion feature financial
SOFR financial
revolving credit facility financial
leverage ratio financial
forward-looking statements regulatory
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01 Entry into a Material Definitive Agreement.
2026 Term Loan Agreement
On June 25, 2026, Easterly Government Properties, Inc. (the “Company”), its operating partnership, Easterly Government Properties LP (the “Operating Partnership”), and certain subsidiaries of the Operating Partnership entered into a term loan agreement (the “2026 Term Loan Agreement”) with PNC Bank, National Association, as administrative agent, U.S. Bank National Association and Truist Bank, as syndication agents, U.S. Bank National Association, PNC Capital Markets LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC, as joint lead arrangers, and U.S. Bank National Association, PNC Capital Markets LLC and Truist Securities, Inc., as joint bookrunners, and the initial lenders named therein (collectively, the “Lenders”).
The 2026 Term Loan Agreement provides for a $200.0 million senior unsecured term loan, which includes an accordion feature that provides the Company with additional capacity, subject to the satisfaction of customary terms and conditions, of up to $50.0 million for a total facility size of $250.0 million (the “2026 Term Loan”). The 2026 Term Loan will mature in June 2031.
Borrowings under the 2026 Term Loan will, at the Operating Partnership’s option, bear interest at floating rates equal to either (i) a fluctuating rate equal to the sum of (a) the highest of (x) PNC Bank’s base rate, (y) the federal funds effective rate plus 0.50% and (z) the one-month adjusted term secured overnight financing (“SOFR”) rate plus 1.00%, plus, in each case, (b) a margin ranging from 0.20% to 0.70% based on the Company’s leverage ratio, (ii) the daily simple SOFR (the “DSS”), or (iii) the term SOFR (the “Term SOFR”), plus, in the case of borrowings bearing interest at DSS or Term SOFR, a margin ranging from 1.20% to 1.70% based on the Company’s leverage ratio.
The 2026 Term Loan Agreement also contains certain customary covenants, including but not limited to financial covenants that require the Company to maintain maximum ratios of consolidated total indebtedness, consolidated secured indebtedness and consolidated secured recourse indebtedness to total asset value, and a minimum consolidated fixed charge ratio.
The Operating Partnership’s obligations under the 2026 Term Loan Agreement are initially fully and unconditionally guaranteed by the Company and certain of their subsidiaries.
Eleventh Amendment to 2016 Term Loan Agreement
On June 25, 2026, the Company, the Operating Partnership, and certain subsidiaries of the Operating Partnership entered into an eleventh amendment (the “Eleventh Amendment”) to its senior unsecured term loan agreement, dated as of September 29, 2016 (as amended, the “2016 Term Loan Agreement”), with PNC Bank, National Association, as administrative agent and a lender, and U.S. Bank National Association and Truist Bank, as lenders.
The Eleventh Amendment removes the credit spread adjustment applicable to SOFR-based borrowings under the 2016 Term Loan Agreement, consistent with the 2026 Term Loan Agreement. Other than the foregoing, the material terms of the 2016 Term Loan Agreement remain unchanged.
Certain of the banks and financial institutions that are parties to the 2026 Term Loan Agreement and/or the Eleventh Amendment and their respective affiliates have in the past provided, are currently providing, and in the future may continue to provide investment banking, commercial banking and other financial services to the Company and its affiliates in the ordinary course of business for which they have received and will receive customary compensation.
The foregoing description of the 2026 Term Loan Agreement and the Eleventh Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the 2026 Term Loan Agreement and the Eleventh Amendment, which are filed as Exhibits 10.1 and 10.2 hereto, respectively, and are incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The terms of the direct financial obligations are summarized under Item 1.01 of this Current Report and are incorporated by reference in this Item 2.03.
Item 7.01 Regulation FD Disclosure.
On June 30, 2026, the Company issued a press release announcing the terms of the 2026 Term Loan Agreement. A copy of that press release is furnished as Exhibit 99.1 to this Current Report. The information in this Item 7.01 of this Current Report, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
Exhibit Number |
Description |
10.1 |
Term Loan Agreement, dated as of June 25, 2026, by and among the Company, the Operating Partnership, the Guarantors named therein, PNC Bank, National Association, as Administrative Agent, U.S. Bank National Association and Truist Bank, as Syndication Agents, U.S. Bank National Association, PNC Capital Markets LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC, as Joint Lead Arrangers, and U.S. Bank National Association, PNC Capital Markets LLC, and Truist Securities, Inc., as Joint Bookrunners and the Initial Lenders named therein |
10.2 |
Eleventh Amendment to Term Loan Agreement, dated as of June 25, 2026, by and among the Company, the Operating Partnership, the Guarantors named therein, PNC Bank, National Association, as Administrative Agent and a Lender, and U.S. Bank National Association and Truist Bank, as Lenders |
99.1 |
Press Release, dated June 30, 2026 |
104 |
Cover Page Interactive Data File (embedded within the inline XBRL document.) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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EASTERLY GOVERNMENT PROPERTIES, INC. |
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Date: |
June 30, 2026 |
By: |
/s/ Franklin V. Logan |
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Franklin V. Logan |
EASTERLY GOVERNMENT PROPERTIES CLOSES FIVE-YEAR $200 MILLION TERM LOAN FACILITY
WASHINGTON, D.C. – June 30, 2026 – Easterly Government Properties, Inc. (NYSE: DEA) (the “Company” or “Easterly”), a fully integrated real estate investment trust focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government and its adjacent partners, announced today the closing of a new five-year $200 million senior unsecured term loan facility (the “Term Loan”). The Term Loan includes an accordion feature that allows the Company to increase commitments by up to $50 million, subject to certain conditions, for a total facility size of $250 million. The Term Loan will mature in June 2031.
The Company intends to use the net proceeds from the Term Loan to repay borrowings outstanding under its unsecured $400 million revolving credit facility and for general corporate purposes.
“We are pleased to expand our capital base with this new term loan facility,” said Allison E. Marino, Easterly’s Chief Financial Officer. “The transaction enhances our liquidity profile and supports our ability to efficiently fund future growth initiatives.”
Borrowings under the new Term Loan will bear interest at a rate of SOFR, plus a spread of 1.20% to 1.70%, depending on the Company's leverage ratio. Given the Company's current leverage ratio, the Term Loan’s initial spread to SOFR is set at 1.30%.
U.S. Bank National Association, PNC Capital Markets LLC, and Truist Securities, Inc. served as Joint Bookrunners. U.S. Bank National Association, PNC Capital Markets LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC, served as Joint Lead Arrangers. PNC Bank, National Association served as Administrative Agent, U.S. Bank National Association and Truist Bank, as Syndication Agents, and Wells Fargo Bank, N.A. as Documentation Agent.
About Easterly Government Properties, Inc.
Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government and its adjacent partners. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “anticipate,” “position,” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to those risks and uncertainties
associated with our business described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on February 23, 2026. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.
Contact:
Easterly Government Properties, Inc.
Cole Bardawill
Director of Investor Relations
202-987-9395
IR@easterlyreit.com