Entertainment Properties Trust Announces
Closing of Financing Transactions, Significantly
Enhancing Its Capital Structure
July 01, 2010 05:24 PM Eastern Daylight Time
KANSAS CITY, Mo.--(EON: Enhanced Online News)--Entertainment Properties Trust (NYSE:EPR) (the
"Company") announced today that it completed two financing transactions on June 30, 2010 which refinance a
significant portion of its outstanding debt and significantly enhance its capital structure.
The Company closed its offering of $250 million in aggregate principal amount of 7.750% senior notes due 2020
(the "notes") to qualified institutional buyers in the United States pursuant to Rule 144A and outside the United States
pursuant to Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). The issue price was
98.290% of the notes' principal amount. The notes are guaranteed by certain of the Company's subsidiaries.
The Company also closed a new $320 million unsecured revolving credit facility simultaneously with the note offering
replacing its former $215 million secured revolving credit facility. The new unsecured revolving credit facility contains
an "accordion" feature, whereby the total amount of the facility may be increased to $420 million subject to lender
approval. The new unsecured credit facility matures on December 1, 2013, and carries an interest rate dependent on
credit ratings which was 300 basis points over LIBOR upon closing, a 50 basis point reduction in the spread from
the former facility. In addition, the new credit facility does not contain the 2% LIBOR floor that existed in the
previous credit facility.
David Brain, the Company’s Chief Executive Officer commented, “We have significantly enhanced the flexibility of
our capital structure by becoming a rated credit and accessing the unsecured debt markets, and have dramatically
reduced our reliance on the secured debt market, particularly CMBS. We believe that over time, we will see a drop
in our cost of capital which should tr