Lexington expects to use the proceeds from the senior unsecured credit facility for general working capital, including to refinance certain indebtedness and to fund property investments. Four draws under the term loan can be made until February 12, 2014.
In connection with the refinancing, Lexington amended its $255.0 seven-year secured term loan agreement to release the security. As a result, all of Lexington's corporate borrowings are now unsecured.
Lexington also announced that it obtained a $40.0 million non-recourse mortgage secured by its previously unencumbered property in Lenexa, Kansas. The mortgage loan is comprised of two notes, a $30.0 million fully amortizing note at a fixed interest rate of 3.40%, and a $10.0 million interest only note at a fixed rate of 4.60%. The notes mature in November 2027.
A joint venture, in which Lexington has a minority interest, that owns a retail property in Palm Beach Gardens, Florida, obtained a $15.3 million non-recourse mortgage secured by such property. The mortgage loan bears interest at a fixed interest rate of 3.70% and matures in March 2018. The mortgage loan proceeds were used to fully repay a $12.0 million bridge loan Lexington made to the joint venture when the property was acquired.
ABOUT LEXINGTON REALTY TRUST
Lexington Realty Trust is a real estate investment trust that owns, invests in, and manages office, industrial and retail properties net-leased to major corporations throughout the United States and provides investment advisory and asset management services to investors in the net lease area. Lexington shares are traded on the New York Stock Exchange under the symbol "LXP". Additional information about Lexington is available on-line at
or by contacting Lexington Realty Trust, Investor Relations, One Penn Plaza, Suite 4015, New York, New York 10119-4015.
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under Lexington's control which may cause actual results, performance or achievements of Lexington to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in Lexington's periodic reports filed with the Securities and Exchange Commission, including risks related to: (1) failure to maintain leverage ratios specified in the credit agreement for the senior unsecured credit facility or comply with financial covenants in the credit agreement for the senior unsecured credit facility, and (2) failure to use the proceeds of the unsecured credit facility as described above. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington's website at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington's future plans, strategies and expectations, are generally identifiable by use of the words "believes,""expects,""intends,""anticipates,""estimates,""projects", "is optimistic" or similar expressions. Lexington undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington's expectations will be realized.
CONTACT: Investor or Media Inquiries, Patrick Carroll, CFO
Lexington Realty Trust
Phone: (212) 692-7200 E-mail: email@example.com