Santa Monica, CA-based Douglas Emmett Inc. recently revealed that it has paid off a $342 million loan (on September 1, 2017) upon the expiration of its prepayment penalty. The loan bore interest at 4.46% per annum and was scheduled to mature on March 1, 2020.
To fund the payoff, Douglas Emmett used some available cash and sold an additional $250 million of its common stock during August under its ATM program. Having paid off its last high interest loan, Douglas Emmett has completed its debt reduction program and related sales of common stock, according to a prepared statement.
Douglas Emmett has reduced its net debt to enterprise value to 32%, and lowered its average annual fixed interest rate to 3.08%. One-third of Douglas Emmett’s wholly-owned office portfolio is now debt free, the release says. Douglas Emmett continues to have no corporate level debt and is not subject to any financial covenants.
Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.
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