Workspace Property Trust, based in Horhsam, closed this week on a $1.275 billion loan from JPMorgan Chase Bank.
In a news release, the company said it plans to use the funds to repay existing shorter-term debt, redeem preferred equity interests and for general corporate purposes, writes Alison Burdo in the Philadelphia Business Journal.
Workspace leaders floated the possibility it would reorganize its debt – its “plan B” – in February when it withdrew plans for an IPO. Last fall, the company filed documents with the Securities and Exchange Commission to go public. It was eyeing tremendous growth, having said in SEC documents that it has lined up buying 25 million square feet for $4 billion, but nixed the IPO following several delays.
“Our ability to enter into this debt facility in both the amount and on the terms we did speaks volumes about the value Workspace has generated in less than two years’ time,” said Thomas Rizk, Workspace co-founder and CEO said in a statement. “The execution of this refinancing provides a tremendous validation of our strategic focus on suburban office and the strength of the platform that Workspace has created.”
Workspace grew its suburban office portfolio significantly in recent years – upping its holdings through two separate transactions with Liberty Property Trust.
It owns, leases and manages 147 properties totaling more than 9.8 million square feet in the western and northern suburbs of Philadelphia, Minneapolis, Phoenix and Tampa, Fla., along with other parts of the Sunshine State. Nearly half of that portfolio is made up by properties just outside of Philadelphia.
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