New York City—SL Green announced it has refinanced, extended and expanded its unsecured corporate credit facility by $217 million to $3 billion.

The five-year funded term loan component of the facility has been increased by $117 million to $1.3 billion, the maturity date has been extended from June 2019 to March 2023, and the current borrowing cost has been reduced to 135 basis points over LIBOR.

The revolving line of credit component has been reduced by $100 million to $1.5 billion, the maturity date has been extended from March 2019 to March 2023, inclusive of as-of-right extension options aggregating one-year, and the current borrowing cost was reduced to 120 basis points over LIBOR.

In addition, a new $200 million, seven-year funded term loan component has been added to the facility, which matures in November 2024 and currently bears interest at 190 basis points over LIBOR.

SL Green CFO Matt DiLiberto noted leading financial institutions have a continued appetite for corporate lending to well-capitalized companies in the New York City real estate market. “This modification will further our unsecured borrowing strategy, extend our maturity profile and simplify our credit facility's overall structure, while lowering our overall borrowing costs,” says DiLiberto.

In its third quarter earnings report, SL Green noted as of Sept. 30, 2017, it held interests in 118 Manhattan buildings totaling 47.8 million square feet. This included ownership interests in 27.4 million square feet of Manhattan buildings and debt and preferred equity investments secured by 20.3 million square feet of buildings. The company also held ownership interests in 27 suburban buildings totaling 4.3 million square feet in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey.

SL Green reported net income attributable to common stockholders for the end of the third quarter 2017 of $38.9 million or $.40 per share. For the same common stockholder net income figures, this compared to $34.3 million or $.34 per share for the same quarter in 2016.

The company also reported net income attributable to common stockholders for the nine months ending Sept. 30, 2017 of $58.4 million or $.59 per share. This compared to net income attributable to common stockholders of $190.9 million or $1.90 per share for the same period in 2016.

Net income attributable to common stockholders for the nine months ending Sept. 30, 2017 includes $12.9 million or $.12 per share of net gains recognized from the sale of real estate as compared to $254.3 million or $2.43 per share for the same period in 2016.

SL Green's funds from operations (FFO) for the end of the third quarter 2017 were $152.9 million or $1.49 per share. This compares to FFO for the same period in 2016 of $171.6 million or $1.63 per share.

FFO for the third quarter of 2016 included $41.1 million or $.39 per share, of additional income related to the recapitalization of a debt investment offset by $19.6 million or $.19 per share, of lost income and accounting write-offs related to space previously leased to Aeropostale at 1515 Broadway. The company also reported FFO for the nine months ending Sept. 30, 2017 of $505.6 million, compared to the FFO for the same period in 2016 of $719.1 million. FFO for the first nine months of 2016 included $207.6 millions of income related to the sale of 388-390 Greenwich Street, which closed in the second quarter of 2016.

For the end of the third quarter 2017, SL Green reported consolidated revenues and operating income of $374.6 million and $206.1 million, respectively. This compared to $416.7 million and $232.9 million, respectively, for the same period in 2016.

Wells Fargo Securities, LLC; J.P. Morgan Securities LLC; Deutsche Bank Securities Inc.; U.S. Bank National Association; Merrill Lynch, Pierce, Fenner & Smith Incorporated; and BMO Capital Markets Group are joint lead arrangers of the facility, with Wells Fargo Bank, National Association serving as the administrative agent, JPMorgan Chase Bank, N.A. serving as the syndication agent and Deutsche Bank AG New York Branch, US Bank National Association, Bank of America, N.A. and Bank of Montreal servicing as co-documentation agents.

New York City—SL Green announced it has refinanced, extended and expanded its unsecured corporate credit facility by $217 million to $3 billion.

In addition, a new $200 million, seven-year funded term loan component has been added to the facility, which matures in November 2024 and currently bears interest at 190 basis points over LIBOR.

Instant Insights /

SL Green Expands Unsecured Corporate Credit Facility to $3 Billion

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