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Subsequent Events
6 Months Ended
Jun. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events

12. Subsequent Events

For its consolidated financial statements as of June 30, 2021, the Company evaluated subsequent events and noted the following significant events.  

Subsequent to June 30, 2021, the Company entered into forward sales transactions under the December 2019 ATM Program for the sale of an additional 500,000 shares of its common stock that have not yet been settled. Subject to its right to elect net share settlement, the Company expects to physically settle the forward sales transactions no later than July 2022. Assuming the forward sales transactions are physically settled in full utilizing a net weighted average initial forward sales price of $21.54 per share, the Company expects to receive net proceeds of approximately $10.8 million, after deducting offering costs, subject to adjustments in accordance with the applicable forward sale transaction.

On July 22, 2021, the Company acquired a 61,384 square foot facility for the U.S. Department of Homeland Security (“Various GSA - Cleveland”) in Cleveland, Ohio. The building was originally constructed in 1981 and substantially renovated in 2016 and 2021. The facility is primarily leased to the GSA for beneficial use of ICE and the NWS and has lease expirations ranging from August 2031 to September 2040.

On July 23, 2021, we entered into a second amended and restated senior unsecured credit facility (our “second amended senior unsecured credit facility”).  Our second amended senior unsecured credit facility increased the total borrowing capacity of our existing senior unsecured credit facility by $50.0 million for a total credit facility size of $650.0 million, and consists of two components: (i) a $450.0 million senior unsecured revolving credit facility (the “amended revolving credit facility”), and (ii) a $200.0 million senior unsecured term loan facility (the “amended term loan facility”), up to $50.0 million of which will be available for a 364-day delayed

draw period. The amended revolving credit facility also includes an accordion feature that will provide us with additional capacity, subject to the satisfaction of customary terms and conditions, of up to $250.0 million.

The Operating Partnership is the borrower, and certain of our subsidiaries that directly own certain of our properties are guarantors under our second amended senior unsecured credit facility. The amended revolving credit facility has an initial four year term and will mature in July 2025, with two six-month as-of-right extension options, subject to certain conditions and the payment of an extension fee. The amended term loan facility has a five year term and will mature in July 2026. In addition, the amended term loan facility is prepayable without penalty for the entire term of the loan.

Borrowings under our amended senior unsecured credit facility bear interest, at our option, at floating rates equal to either: 

 

 

a Eurodollar rate equal to a periodic fixed rate equal to LIBOR plus, a margin ranging from 1.20% to 1.80% for advances under the amended revolving credit facility and a margin ranging from 1.20% to 1.70% for advances under the amended term loan facility; or

 

 

a fluctuating rate equal to the sum of (a) the highest of (x) Citibank, N.A.’s base rate, (y) the federal funds effective rate plus 0.50% and (z) the one-month Eurodollar rate plus 1.00% plus (b) a margin ranging from 0.20% to 0.80% for advances under the amended revolving credit facility and a margin ranging from 0.20% to 0.70% for advances under the amended term loan facility, in each case with a margin based on our leverage ratio.

If the Operating Partnership achieves certain sustainability targets as defined in our second amended senior unsecured credit facility agreement, the applicable margin will decrease by 0.01%.

In addition, on July 23, 2021, we entered into a fourth amendment to our existing 2016 term loan facility. The fourth amendment amends certain provisions in the 2016 term loan facility to conform to certain changes made to such provisions in our amended senior unsecured credit facility.