Paramount Completes $1.25 Billion Refinancing of 1633 Broadway Realizing $179 Million of Net Proceeds
NEW YORK--(BUSINESS WIRE)--Nov 26, 2019--
Paramount Group, Inc. (NYSE: PGRE) (“Paramount” or the “Company”) announced today that it has completed a $1.25 billion refinancing of 1633 Broadway, a 2.5 million square foot trophy office building located on Broadway between 50 th and 51 st Streets in Manhattan.
The new 10-year interest-only loan has a fixed rate of 2.99% and matures in December 2029. The proceeds from the refinancing were used to repay the existing $1.05 billion loan that bore interest at a weighted average rate of 3.55% and was scheduled to mature in December 2022. The Company realized net proceeds of approximately $179 million after the repayment of the existing loan, swap breakage costs and closing costs.
“With the office portion of 1633 Broadway now 100% leased, we took advantage of attractive credit markets to capitalize on our recent leasing success, improve the Company’s debt maturity profile and increase our financial flexibility,” said Wilbur Paes, Executive Vice President, Chief Financial Officer and Treasurer of Paramount. “Through this transaction we have effectively refinanced out equity proceeds, right sized leverage on the asset, and added seven years of term, all while keeping annual cash interest unchanged. Our total debt stack now carries a weighted average interest rate of 3.44% and a weighted average maturity of over six years.”
Paramount engaged Eastdil Secured, LLC to arrange the financing.
About Paramount Group, Inc.
Headquartered in New York City, Paramount Group, Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City, San Francisco and Washington, D.C. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.
View source version on businesswire.com:https://www.businesswire.com/news/home/20191126005168/en/
CONTACT: Wilbur Paes
Executive Vice President, Chief Financial Officer
Director, Business Development & Investor Relations
KEYWORD: NEW YORK UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: REIT FINANCE PROFESSIONAL SERVICES COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY
SOURCE: Paramount Group, Inc.
Copyright Business Wire 2019.
PUB: 11/26/2019 04:15 PM/DISC: 11/26/2019 04:15 PM