Quarterly report pursuant to Section 13 or 15(d)

Unsecured Revolving Credit Facility

v3.5.0.2
Unsecured Revolving Credit Facility
9 Months Ended
Sep. 30, 2016
Unsecured Revolving Credit Facility

9.    UNSECURED REVOLVING CREDIT FACILITY



The Company has a $600 million unsecured revolving credit facility with a group of 17 lenders.  The facility is expandable to $1 billion and matures in July 2017.  It has two six-month extension options each requiring the payment of a 7.5 basis point fee.  The interest rate on outstanding borrowings (not electing the Company’s competitive bid feature) and the facility fee on the current borrowing capacity payable quarterly in arrears are based upon the Operating Partnership’s unsecured debt ratings, as follows: 



 

 

 

 



 

 

 

 

Operating Partnership's

 

Interest Rate -

 

 

Unsecured Debt Ratings:

 

Applicable Basis Points

 

Facility Fee

Higher of S&P or Moody's

 

Above LIBOR

 

Basis Points

No ratings or less than BBB-/Baa3

 

170.0 

 

35.0 

BBB- or Baa3 (current)

 

130.0 

 

30.0 

BBB or Baa2

 

110.0 

 

20.0 

BBB+ or Baa1

 

100.0 

 

15.0 

A- or A3 or higher

 

92.5 

 

12.5 



The facility has a competitive bid feature, which allows the Company to solicit bids from lenders under the facility to borrow up to $300 million at interest rates less than those above. 



The terms of the unsecured facility include certain restrictions and covenants which limit, among other things the incurrence of additional indebtedness, the incurrence of liens and the disposition of real estate properties (to the extent that: (i) such property dispositions cause the Company to default on any of the financial ratios of the facility described below, or (ii) the property dispositions are completed while the Company is under an event of default under the facility, unless, under certain circumstances, such disposition is being carried out to cure such default), and which require compliance with financial ratios relating to the maximum leverage ratio (60 percent), the maximum amount of secured indebtedness (40 percent), the minimum amount of fixed charge coverage (1.5 times), the maximum amount of unsecured indebtedness (60 percent), the minimum amount of unencumbered property interest coverage (2.0 times) and certain investment limitations (generally 15 percent of total capitalization).    If an event of default has occurred and is continuing, the Company will not make any excess distributions except to enable the General Partner to continue to qualify as a REIT under the Code.  The Company was in compliance with its debt covenants under its revolving credit facility as of September 30, 2016.

 

As of September 30, 2016 and December 31, 2015, the Company had outstanding borrowings of $95 million and $155 million, respectively, under its unsecured revolving credit facility. 

Mack Cali Realty LP [Member]  
Unsecured Revolving Credit Facility

9.    UNSECURED REVOLVING CREDIT FACILITY



The Company has a $600 million unsecured revolving credit facility with a group of 17 lenders.  The facility is expandable to $1 billion and matures in July 2017.  It has two six-month extension options each requiring the payment of a 7.5 basis point fee.  The interest rate on outstanding borrowings (not electing the Company’s competitive bid feature) and the facility fee on the current borrowing capacity payable quarterly in arrears are based upon the Operating Partnership’s unsecured debt ratings, as follows: 



 

 

 

 



 

 

 

 

Operating Partnership's

 

Interest Rate -

 

 

Unsecured Debt Ratings:

 

Applicable Basis Points

 

Facility Fee

Higher of S&P or Moody's

 

Above LIBOR

 

Basis Points

No ratings or less than BBB-/Baa3

 

170.0 

 

35.0 

BBB- or Baa3 (current)

 

130.0 

 

30.0 

BBB or Baa2

 

110.0 

 

20.0 

BBB+ or Baa1

 

100.0 

 

15.0 

A- or A3 or higher

 

92.5 

 

12.5 



The facility has a competitive bid feature, which allows the Company to solicit bids from lenders under the facility to borrow up to $300 million at interest rates less than those above. 



The terms of the unsecured facility include certain restrictions and covenants which limit, among other things the incurrence of additional indebtedness, the incurrence of liens and the disposition of real estate properties (to the extent that: (i) such property dispositions cause the Company to default on any of the financial ratios of the facility described below, or (ii) the property dispositions are completed while the Company is under an event of default under the facility, unless, under certain circumstances, such disposition is being carried out to cure such default), and which require compliance with financial ratios relating to the maximum leverage ratio (60 percent), the maximum amount of secured indebtedness (40 percent), the minimum amount of fixed charge coverage (1.5 times), the maximum amount of unsecured indebtedness (60 percent), the minimum amount of unencumbered property interest coverage (2.0 times) and certain investment limitations (generally 15 percent of total capitalization).    If an event of default has occurred and is continuing, the Company will not make any excess distributions except to enable the General Partner to continue to qualify as a REIT under the Code.  The Company was in compliance with its debt covenants under its revolving credit facility as of September 30, 2016.

 

As of September 30, 2016 and December 31, 2015, the Company had outstanding borrowings of $95 million and $155 million, respectively, under its unsecured revolving credit facility.