In August, the Company entered into a $120 million term loan agreement, with the ability to expand the amount drawn during the term, subject to certain conditions, by an additional $80 million. The Term Loan has a seven-year term and a variable interest rate of LIBOR plus 2.10% to 2.60%, depending on the Company’s leverage levels.
In October, the Company completed a public offering of 8,625,000 newly issued common shares, which generated net proceeds of approximately $204.9 million. COPT used the net proceeds from the offering to repay amounts outstanding under its unsecured revolving credit facility and for general corporate purposes.
Balance Sheet and Financial Flexibility:
As of December 31, 2012, the Company had a total market capitalization of $4.5 billion, with $2.0 billion in debt outstanding, equating to a 45.0% debt-to-total market capitalization ratio. Also, the Company’s weighted average interest rate was 4.5% for the quarter ended December 31, 2012 and 80% of the Company’s debt was subject to fixed interest rates, including the effect of interest rate swaps.2013 FFO Guidance: Management is affirming its previously issued guidance for 2013 FFOPS of between $1.83 and $1.93, and its first quarter 2013 FFOPS guidance of between $0.44 and $0.46. A reconciliation of projected diluted EPS to projected FFOPS for the quarter ending March 31, 2013 and the year ending December 31, 2013 is provided, as follows:
|Quarter Ending||Year Ending|
|March 31, 2013||December 31, 2013|
|FFOPS, NAREIT definition||$||0.44||$||0.46||$||1.83||$||1.93|
|Real estate depreciation and amortization||(0.35||)||(0.37||)||(1.41||)||(1.48||)|
|Noncontrolling interests in non-FFO items and other||0.01||0.02||0.04||0.08|
|Conference Call Date:||Friday, February 8, 2013|
|Time:||12:00 p.m. Eastern Time|
|Telephone Number: (within the U.S.)||888-679-8034|
|Telephone Number: (outside the U.S.)||617-213-4847|