Starwood Waypoint Residential Trust has entered into an agreement for an additional USD500 million on its revolving credit facility secured by single family residences, increasing the capacity to USD1.0 billion.
The credit facility has a term expiring on 3 February 2017 and includes an option to extend the facility for one additional year.
The facility also has an accordion feature that permits the company to expand the capacity of the facility to USD1.25 billion.
At 13 June 2014, Starwood Waypoint Residential Trust had used approximately USD405 million and has approximately USD595 million of availability under the credit facility, excluding the accordion. The syndicate of banks in the credit facility includes Citibank as lead arranger and sole bookrunner, Bank of America, J.P. Morgan Chase Bank, Goldman Sachs Bank and OneWest Bank.
Nina Tran, chief financial officer of Starwood Waypoint Residential Trust, says: "The significant expansion in the company's credit facility provides additional capacity to create value for shareholders by allowing us to continue to invest in attractively-priced single family rental homes and non-performing loan pools."
Combined with the USD350 million warehouse credit facility with Deutsche Bank that closed in March 2014, which has been used to finance the acquisition of non-performing loan pools, the company has a total credit capacity of USD1.35 billion, with the ability to expand the capacity to USD1.6 billion.