Veris Residential Amends $500 Million Credit Facility to Reduce Leverage and Optimize Balance Sheet

Veris Residential, Inc. (NYSE: VRE) has amended its $500 million credit facility, a strategic move aimed at reducing leverage and selling non-strategic assets as part of its 2025 corporate plan. The amended facility includes a $300 million Revolving Credit Facility and a $200 million delayed-draw Term Loan, featuring a leverage-based pricing grid and reducing the required secured properties in the collateral pool from five to two. This adjustment is projected to decrease the company's corporate borrowing costs by an initial 55 basis points, with possibilities for additional savings.

Mahbod Nia, Chief Executive Officer of Veris Residential, emphasized the amendment's role in improving the company's cost of capital and financial flexibility. This initiative is a key component of Veris Residential's strategy to maximize stakeholder value through balance sheet optimization and the execution of up to $500 million in non-strategic asset sales. The company has already made progress by completing the $85 million sale of Signature Place, applying $80 million of the proceeds to reduce its Term Loan to $120 million.

These financial maneuvers are pivotal in Veris Residential's multi-year strategy to decrease Net Debt to EBITDA below 10.0x by the end of 2025 and further below 9.0x by the end of 2026. The credit facility amendment was supported by JPMorgan Chase Bank, N.A. and The Bank of New York Mellon as Joint Lead Arrangers and Joint Bookrunners, with contributions from several other financial institutions, highlighting the banking sector's endorsement of Veris Residential's strategic direction.