$222m credit deal closed

Real Estate Weekly, Jan 14, 2009

Education Realty Trust, Inc. announced the closing of a $222 million secured credit facility with Red Mortgage Capital, Inc., a Fannie Mac DUS(R) lender.

The Company has drawn approximately $198 million in initial loans under the facility which was used to retire $185 million of secured first mortgage debt that was due to mature in July 2009. to reduce its corporate revolving credit facility, and provide for other corporate working capital needs.

The Company expects to recognize an approximate $4 million loss on the early retirement of debt in the fourth quarter of 2008, mostly related to defeasance and other transaction costs. The initial loans consist of fixed rate loans of approximately $16 million, $72 million, and $60 million with maturities of five, seven. and ten-year terms, respectively.

The average annual fixed interest rate is approximately 6.01%. The facility also provided five-year variable interest rate loans based on 30-day LIBOR totaling approximately $50 million.

The variable loans are currently priced at 3.82% per annum.

Separately, the company also announced that it has received an extension of its $100 million secured revolving credit facility with KeyBank until March 30, 2010.