MEMPHIS, Tenn., Jan. 5, 2009 (GLOBE NEWSWIRE) -- Education Realty Trust, Inc.
(NYSE:EDR) today announced the closing of a $222 million secured credit facility
with Red Mortgage Capital, Inc., a Fannie Mae DUS(R) lender on December 31,
2008. The Company has drawn approximately $198 million in initial loans under
the facility which was used to retire $185 million of secured first mortgage
debt that was due to mature in July 2009, to reduce its corporate revolving
credit facility, and provide for other corporate working capital needs. The
Company expects to recognize an approximate $4 million loss on the early
retirement of debt in the fourth quarter of 2008, mostly related to defeasance
and other transaction costs.
The initial loans consist of fixed rate loans of approximately $16 million, $72
million, and $60 million with maturities of five, seven, and ten-year terms,
respectively. The average annual fixed interest rate is approximately 6.01%. The
facility also provided five-year variable interest rate loans based on 30-day
LIBOR totaling approximately $50 million. The variable loans are currently
priced at 3.82% per annum.
Separately, the Company also announced today that it has received an extension
of its $100 million secured revolving credit facility with KeyBank. The Company
meets the extension requirements and has exercised its option to extend the
maturity date until March 30, 2010, under existing terms. The remaining
commitment availability under the revolving credit facility as of December 31,
2008 is approximately $65 million.
Randy Brown, Education Realty Trust's Chief Financial Officer, stated, "We
believe the execution of this new facility validates that reasonably-priced debt
is available for high-quality student housing assets. We were able to close on
the Fannie Mae facility at attractive interest rates and favorable terms,
eliminating a majority of the Company's debt maturity risk in 2009. The
extension of our corporate line of credit until March of 2010 is also a positive
step toward strengthening our capital position. Furthermore, we continue to work
towards securing additional financing for the remainder of our property debt
which does not mature until December 2009."
About Education Realty Trust
Education Realty Trust, Inc. (NYSE:EDR) is a self-administered, self-managed
real estate investment trust that owns, develops and manages high-quality
student housing communities throughout the United States. The Company has
ownership and management interests in 65 properties with 38,143 beds in a total
of 21 states. For more information please visit the Company's web site at
www.educationrealty.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995
Statements about the company's business that are not historical facts are
"forward-looking statements." Forward-looking statements are based on current
expectations. You should not rely on our forward-looking statements because the
matters they describe are subject to known and unknown risks and uncertainties
that could cause the company's future results, performance, or achievements to
differ significantly from the results, performance, or achievements expressed or
implied by such statements. Such risks are set forth under the captions "Item
1A. Risk Factors" and "Forward-Looking Statements" and under the caption "Item
2. Management's Discussion and Analysis of Financial Condition and Results of
Operations" (or similar captions) in our annual report on Form 10-K and our
quarterly reports on Form 10-Q, and as described in our other filings with the
Securities and Exchange Commission. Forward-looking statements speak only as of
the date on which they are made, and EDR undertakes no obligation to update
publicly or revise any forward-looking statement, whether as a result of new
information, future developments, or otherwise.
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CONTACT: ICR, LLC
Brad Cohen
203-682-8211
bcohen@icrinc.com
Ken Avalos
203-682-8341
ken.avalos@icrinc.com
