First Union and FleetBoston last week launched syndication of a $400 million revolver HRPT Properties Trust, replacing a larger deal the pair led for the company.Wells Fargo signed on as syndication agent, Commerzbank as documentation agent, and Bank of New York as senior managing agent, according to officials at First Union. John Popeo, cfo, said the company will use the $400 million facility to replace an existing $500 million, four-year credit the company also has through Fleet and First Union that matures in 2002. Popeo declined to comment on why the company reduced the facility size. He said the company chose the banks based on the strong previous relationship they have with the company.
Bankers said pricing, which is based on a grid tied to the company's debt ratings, is LIBOR plus 80 basis points with a 20 basis points annual facility fee. Upfront fees to lenders range from 45 basis points for commitments of $10 million to 65 basis points for commitments of $35 million. Popeo declined to comment on pricing. He said he expects the deal to close in early April.
HRPT owns 191 office buildings across the country and is headquartered in Newton, Mass.