ESRT Closes $1B Credit Facility

TL;DR

ESRT just locked in a $1B credit line, replacing their old one, giving them more cash flexibility.

AI Summary

Empire State Realty Trust, Inc. (ESRT) and its operating partnership, Empire State Realty OP, L.P., announced on April 10, 2024, the closing of a $1.0 billion senior secured revolving credit facility. This new facility replaces their previous $950 million credit facility and matures on April 10, 2029, with options for extensions.

Why It Matters

This refinancing provides Empire State Realty Trust with enhanced financial flexibility and liquidity, potentially improving its ability to manage operations and pursue strategic initiatives.

Risk Assessment

Risk Level: low — The filing concerns a routine credit facility refinancing, which is a standard financial operation for publicly traded companies.

Key Numbers

• $1.0B — New Credit Facility (Increased borrowing capacity and liquidity.)
• $950M — Previous Credit Facility (Amount replaced by the new, larger facility.)
• 2029 — Maturity Date (Extended debt maturity provides longer-term financial planning.)

Key Players & Entities

• Empire State Realty Trust, Inc. (company) — Filer
• Empire State Realty OP, L.P. (company) — Filer
• $1.0 billion (dollar_amount) — Senior secured revolving credit facility amount
• $950 million (dollar_amount) — Previous credit facility amount
• April 10, 2029 (date) — Maturity date of the new credit facility
• April 10, 2024 (date) — Closing date of the new credit facility

FAQ

Key Financial Figures

• $0.01 — Inc. Class A Common Stock, par value $0.01 per share ESRT The New York Stock E
• $225 million — ership will issue and sell an aggregate $225 million of its Notes, consisting of (a) $155 mi
• $155 million — million of its Notes, consisting of (a) $155 million aggregate principal amount of 7.20% Ser
• $45 million — eed Senior Notes due June 17, 2029, (b) $45 million aggregate principal amount of 7.32% Ser
• $25 million — Senior Notes due June 17, 2031 and (c) $25 million aggregate principal amount of 7.41% Ser

Filing Documents

• tm2411551d1_8k.htm (8-K) — 57KB
• tm2411551d1_ex10-1.htm (EX-10.1) — 664KB
• tm2411551d1_ex99-1.htm (EX-99.1) — 11KB
• tm2411551d1_ex99-1img001.jpg (GRAPHIC) — 4KB
• 0001104659-24-046285.txt ( ) — 1125KB
• esrt-20240410.xsd (EX-101.SCH) — 4KB
• esrt-20240410_def.xml (EX-101.DEF) — 28KB
• esrt-20240410_lab.xml (EX-101.LAB) — 38KB
• esrt-20240410_pre.xml (EX-101.PRE) — 27KB
• tm2411551d1_8k_htm.xml (XML) — 12KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. Senior Unsecured Notes On April 10, 2024, Empire State Realty Trust, Inc. (the "Company") and Empire State Realty OP, L.P. (the "Operating Partnership"), the operating partnership subsidiary of the Company, entered into a Note Purchase Agreement with the purchasers named therein (the "Purchase Agreement") in connection with a private placement of the Operating Partnership's green guaranteed senior unsecured notes (the "Notes"). Under the Purchase Agreement, the Operating Partnership will issue and sell an aggregate $225 million of its Notes, consisting of (a) $155 million aggregate principal amount of 7.20% Series I Green Guaranteed Senior Notes due June 17, 2029, (b) $45 million aggregate principal amount of 7.32% Series J Green Guaranteed Senior Notes due June 17, 2031 and (c) $25 million aggregate principal amount of 7.41% Series K Green Guaranteed Senior Notes due June 17, 2034. The sale and purchase of the Notes is scheduled to be held on June 17, 2024, subject to customary closing conditions. The issue price for the Notes is 100% of the aggregate principal amount thereof. Pursuant to the terms of the Purchase Agreement, the Operating Partnership may prepay all or a portion of the Notes upon notice to the holders at a price equal to 100% of the principal amount so prepaid plus a make-whole premium as set forth in the Purchase Agreement. The obligations of the Operating Partnership under the Notes will be unconditionally guaranteed by each of the Company's subsidiaries that guarantees or otherwise becomes liable at any time in respect of, indebtedness under any Material Credit Facility (as defined in the Purchase Agreement) of the Company or any of its subsidiaries. The Purchase Agreement contains customary covenants, including limitations on liens, investment, distributions, incurrence of debt, fundamental changes, and transactions with affiliates, and will require certain customary financial reports.

01. Regulation FD Disclosure

Item 7.01. Regulation FD Disclosure. On April 10, 2024, the Company issued a press release announcing the above-described financings. A copy of the press release is attached hereto as Exhibit 99.1. The information in Item 7.01 of this Current Report on Form 8-K is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. Such information shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act or the Exchange Act, unless it is specifically incorporated by reference therein.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 10.1 Note Purchase Agreement, dated April 10, 2024, among Empire State Realty OP, L.P., Empire State Realty Trust, Inc. and the purchasers named therein. 99.1 Press release dated April 10, 2024 issued by the Company. 104 Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document). SIGNATURE Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. EMPIRE STATE REALTY TRUST, INC. (Registrant) Date: April 11, 2024 By: /s/ Christina Chiu Name: Christina Chiu Title: President EMPIRE STATE REALTY OP, L.P. (Registrant) By: Empire State Realty Trust, Inc., as general partner Date: April 11, 2024 By: /s/ Christina Chiu Name: Christina Chiu Title: President

View Full Filing

View this 8-K filing on SEC EDGAR