Oasis Residential Secures $150 Million Unsecured Credit Facility, Expands Portfolio

Strategic Insights -

Oasis Residential, a real estate investment trust specializing in upscale apartment communities, has executed a $150 million commitment for a new unsecured revolving credit facility. The facility, led by Wells Fargo Bank, will provide the company with more flexible funding options and allow it to replace its existing secured credit facilities totaling $101.5 million. The new facility is priced at a floating rate of LIBOR + 175 basis points and has a two-year term with a one-year renewal option.

Key Takeaways:

  • Oasis Residential has secured a $150 million unsecured revolving credit facility, replacing its existing secured credit facilities totaling $101.5 million.
  • The new facility is priced at a floating rate of LIBOR + 175 basis points and has a two-year term with a one-year renewal option.
  • Upon closing, the company will have more than 50% of its apartment portfolio unencumbered, providing greater flexibility in funding short-term financing needs.
  • The company has also acquired a 276-unit apartment community in Littleton, Colorado, for $12.6 million, which has been renamed Oasis Centennial.
  • Oasis Residential owns and operates 11,067 mature apartment units and has 2,294 units under construction, with a focus on the Nevada and Colorado markets.
  • The company has a 10-year-old property in Colorado that is secured by 1,068 apartment units, with plans to convert to an unsecured loan when it attains an investment grade rating of BBB/Baa2.

Statistics:

  • $150 million: commitment for the new unsecured revolving credit facility
  • 101.5 million: total of existing secured credit facilities being replaced
  • 175 basis points: LIBOR + basis points, the floating rate pricing of the new facility
  • 50%: percentage of the apartment portfolio expected to become unencumbered upon closing of the new facility
  • 876 units: total number of mature units owned by Oasis Residential in the greater Denver, Colorado market
  • 2,294 units: number of units under construction by Oasis Residential

Sources:

  • Oasis Residential, Inc. press release, September 20, 1995
  • OAS: Oasis Residential, Inc. (NYSE)
  • Wells Fargo Bank
  • J.P. Morgan
  • Bank One
  • Teachers' Insurance & Annuity
  • Aetna Insurance Co.