J.P. Morgan Chase is looking for lenders to round out the syndicate on a $500 million credit line for AvalonBay Communities. The bank, along with administrative agent FleetBoston Financial, is holding a bank meeting in New York today. The three-year loan refinances a $600 million credit facility. The facility is priced at LIBOR plus 3/4 %, which matches pricing on the previous line. Up-front fees could not be determined, one banker said, adding that the banks may wait to gauge the response to the deal before setting the fees. Calls to J.P. Morgan Chase were referred to a spokeswoman, who did not return calls.
The Alexandria, Va., real estate investment trust likely reduced the size because it is not using its full capacity, the banker speculated. Moreover, the line likely includes an option to increase its size if oversubscribed, he added. Calls to Thomas Sargeant, senior v.p., cfo and treasurer, were not returned by press time.