Veris Residential, Inc. (NYSE: VRE) has amended its $500 million credit facility, a move that underscores the company's commitment to reducing leverage and selling non-strategic assets as part of its 2025 corporate plan. The amended facility, which includes a $300 million Revolving Credit Facility and a $200 million delayed-draw Term Loan, introduces a leverage-based pricing grid and reduces the number of required secured properties in the collateral pool from five to two. This adjustment is expected to lower the company's corporate borrowing costs by an initial 55 basis points, with potential for further savings.
Mahbod Nia, Chief Executive Officer of Veris Residential, highlighted the significance of the amended facility, stating it provides the company with an improved cost of capital and increased financial flexibility. This strategic financial maneuver is part of Veris Residential's broader strategy to enhance value for its stakeholders by optimizing its balance sheet and executing up to $500 million of non-strategic asset sales.
In conjunction with the credit facility amendment, Veris Residential completed the $85 million sale of Signature Place, utilizing $80 million of the proceeds to reduce its Term Loan to $120 million. These transactions represent critical steps in the company's multi-year balance sheet strategy, aiming to reduce Net Debt to EBITDA to below 10.0x by the end of 2025 and further to below 9.0x by the end of 2026.
The credit facility amendment was facilitated by JPMorgan Chase Bank, N.A. and The Bank of New York Mellon, serving as Joint Lead Arrangers and Joint Bookrunners, with additional participation from Bank of America, N.A., Capital One, National Association, Goldman Sachs Bank USA, Royal Bank of Canada, Eastern Bank, and Associated Bank. This collaborative effort underscores the financial community's support for Veris Residential's strategic initiatives.
