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Business planning

Veris Residential Completes Amended Credit Facility and Sells Signature Place for $80 Million in Term Loan Reduction

Strategic Insights

— 1 min read

Veris Residential, a forward-thinking, Northeast-focused Class A multifamily REIT, has announced the completion of an amended $500 million credit facility and the sale of Signature Place, resulting in an $80 million reduction in its term loan. The transaction reflects the company's progress in advancing its 2025 corporate plan to sell non-strategic assets and reduce leverage, which is expected to position Veris Residential to reduce its net debt-to-EBITDA ratio to below 9.0x by year-end 2026.

Key Takeaways:

  • Veris Residential has amended its $500 million credit facility, which includes a $300 million revolving credit facility and a $200 million delayed-draw term loan, to introduce a leverage-based pricing grid for the revolver.
  • The amended facility reduces the required number of secured properties in the collateral pool from five to two and matures in April 2027, retaining a one-year extension option on the revolver.
  • The transaction is expected to reduce the company's corporate borrowing costs by 55 basis points, with potential to realize further savings as its balance sheet strengthens.
  • Veris Residential has completed the $85 million sale of Signature Place, using proceeds to reduce its term loan by $80 million to $120 million.
  • The company has a multi-year balance sheet strategy to reduce leverage and borrowing costs, with targets to reduce its net debt-to-EBITDA ratio to below 10.0x by year-end 2025 and below 9.0x by year-end 2026.
  • JPMorgan Chase Bank, N.A. and The Bank of New York Mellon served as the Joint Lead Arrangers and Joint Bookrunners on the credit facility, with JPMorgan Chase Bank, N.A. acting as the Administrative Agent and The Bank of New York Mellon acting as the Syndication Agent.

Statistics:

  • Reduction in term loan: $80 million
  • Sale of Signature Place: $85 million
  • Revolver pricing grid: 1.25% to 1.80% over SOFR
  • Collateral pool reduction: from five to two properties
  • Maturity date: April 2027
  • Extension option: one-year option on the revolver
  • Net debt-to-EBITDA ratio target: below 10.0x by year-end 2025 and below 9.0x by year-end 2026

Sources:

  • Veris Residential, Inc. press release, "Veris Residential Announces Amendment to its Credit Facility," July 10, 2025.
  • Veris Residential, Inc. website, "About Veris Residential, Inc."

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