Veris Residential Enhances Liquidity with Amended Credit Facility and Asset Sale
Veris Residential, Inc. has amended its $500 million credit facility and sold a property for $85 million, steps that reduce borrowing costs and support its strategy to decrease leverage and sell non-strategic assets.
Veris Residential, Inc. (NYSE: VRE) has announced the amendment of its $500 million credit facility, a move that underscores the company's commitment to reducing leverage and optimizing its balance sheet. The amended facility, which includes a $300 million Revolving Credit Facility and a $200 million delayed-draw Term Loan, introduces a leverage-based pricing grid and reduces the number of required secured properties in the collateral pool. This adjustment is expected to lower the company's corporate borrowing costs by 55 basis points initially, with potential for further savings.
Mahbod Nia, Chief Executive Officer of Veris Residential, highlighted the transaction's role in advancing the company's 2025 corporate plan, which includes the sale of up to $500 million in non-strategic assets. The company also completed the $85 million sale of Signature Place, using the proceeds to reduce its Term Loan by $80 million. These steps are part of Veris Residential's broader strategy to achieve a Net Debt to EBITDA ratio below 10.0x by the end of 2025 and below 9.0x by the end of 2026.
The transaction involved several financial institutions, with JPMorgan Chase Bank, N.A. and The Bank of New York Mellon serving as Joint Lead Arrangers and Joint Bookrunners. Other participants included Bank of America, N.A., Capital One, National Association, Goldman Sachs Bank USA, and Royal Bank of Canada, among others. For more information, visit http://www.verisresidential.com/.