Equity Residential Announces New Financing Activities in Preparation for Closing of Archstone Acquisition

  Equity Residential Announces New Financing Activities in Preparation for
  Closing of Archstone Acquisition

Secures New $2.5 Billion Line of Credit and $750 Million Term Loan Terminates
                      $2.5 Billion Bridge Loan Facility

Business Wire

CHICAGO -- January 14, 2013

Equity Residential (NYSE: EQR) today announced that the company has entered
into a new unsecured revolving credit facility and term loan as it positions
itself for the closing of the Archstone acquisition in the first quarter of
2013.

“We are very pleased to put these new facilities in place and are appreciative
of the support that we have received from a syndicate of 25 financial
institutions for both the revolver and the term loan,” said Mark J. Parrell,
Equity Residential’s Executive Vice President and CFO. “Between these loans
and the proceeds from the more than $3.0 billion of non-core assets we have
recently sold or have under contract, we have exceeded our funding objectives
for the Archstone closing.”

On January 11, 2013, the company entered into a new $2.5 billion unsecured
revolving credit agreement with a group of 25 financial institutions. The new
facility matures in April 2018 and has an interest rate of LIBOR plus a spread
and an annual facility fee that are dependent on the company’s then current
credit rating. At the company’s current rating, the interest rate spread is
1.05% and the annual facility fee is 15 basis points. This facility replaced
the company’s existing $1.75 billion facility which was scheduled to mature in
July 2014.

Also on January 11, 2013, the company entered into a new senior unsecured $750
million delayed draw term loan facility with an interest rate of LIBOR plus a
spread which is dependent on the company’s then current credit rating. At the
company’s current rating, the interest rate spread is 1.20%. The maturity date
of the facility is January 11, 2015, subject to a one year extension option
exercisable by the company. The facility is currently undrawn and is available
in one draw made on or before July 11, 2013 and may be used to fund the
Archstone acquisition or for other corporate purposes.

With the completion of these financing activities, the company terminated the
$2.5 billion bridge loan facility commitment that it obtained
contemporaneously with entering into the Archstone acquisition contract in
November 2012.

Equity Residential is an S&P 500 company focused on the acquisition,
development and management of high quality apartment properties in top U.S.
growth markets. Equity Residential owns or has investments in 403 properties
located in 13 states and the District of Columbia, consisting of 115,370
apartment units. For more information on Equity Residential, please visit our
website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains
forward-looking statements and information within the meaning of the federal
securities laws. These statements are based on current expectations,
estimates, projections and assumptions made by management. While Equity
Residential’s management believes the assumptions underlying its
forward-looking statements are reasonable, such information is inherently
subject to uncertainties and may involve certain risks, including, without
limitation, changes in general market conditions, including the rate of job
growth and cost of labor and construction material, the level of new
multifamily construction and development, competition and local government
regulation. Other risks and uncertainties are described under the heading
“Risk Factors” in our Annual Report on Form 10-K and subsequent periodic
reports filed with the Securities and Exchange Commission (SEC) and available
on our website, www.equityapartments.com. Many of these uncertainties and
risks are difficult to predict and beyond management’s control.
Forward-looking statements are not guarantees of future performance, results
or events. Equity Residential assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent events.

Contact:

Equity Residential
Marty McKenna, (312) 928-1901
 
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