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Chambers Street Announces Investment Grade Issuer Rating

Stocks in this article: CSG

Chambers Street Properties (NYSE:CSG) (the “Company”), a net lease industrial and office real estate investment trust, today announced that the Company has been assigned a Baa3 issuer rating from Moody’s Investors Service (“Moody’s”).

The Baa3 issuer rating from Moody’s reflects, but is not limited to, the Company’s moderate leverage, high fixed charge coverage ratio, manageable near-term debt maturities and sound liquidity. In addition, Moody’s cited Chambers Street’s high-quality and well-diversified property portfolio.

“We are pleased that Moody’s has recognized the quality and stability of our real estate portfolio, as well as the significant strength and flexibility within our balance sheet,” said Martin A. Reid, Chambers Street’s Executive Vice President and Chief Financial Officer. “Maintaining a capital structure to support our operating and investment initiatives has always been a core strategy for our Company, and receipt of an investment grade issuer rating is an important step in expanding our sources of capital, and further reducing our overall cost of capital.”

The receipt of a Baa3 issuer rating from Moody’s also will result, beginning on January 1, 2014, in adjustments to the interest rates on the Company’s unsecured credit facilities, as described below:

  • The Company’s $850 million unsecured revolving credit facility will carry an interest rate of LIBOR plus 160 basis points on outstanding borrowings, as compared to its interest rate of LIBOR plus 170 basis points as of September 30, 2013.
  • The Company’s $200 million unsecured term loan, scheduled to mature in March 2018 and subject to an existing interest rate swap agreement, will carry a fixed interest rate of 2.4885% per annum for the duration of its term, as compared to its interest rate of 2.6385% as of September 30, 2013.
  • The Company’s $200 million unsecured term loan, scheduled to mature in January 2019 and subject to an existing interest rate swap agreement, will carry a fixed interest rate of 3.124% per annum for the duration of its term, as compared to its interest rate of 3.274% as of September 30, 2013.
  • The Company’s $50 million unsecured term loan, scheduled to mature in March 2020 and subject to an existing interest rate swap agreement, will carry a fixed interest rate of 3.275% per annum for the duration of its term, as compared to its interest rate of 3.675% as of September 30, 2013.
  • The Company’s $120 million unsecured term loan, scheduled to mature in January 2021 and subject to an existing interest rate swap agreement, will carry a fixed interest rate of 4.32125% per annum for the duration of its term, as compared to its interest rate of 4.42125% as of September 30, 2013.

About Chambers Street Properties (NYSE: CSG)

Chambers Street is a real estate investment trust focused on acquiring, owning and operating net leased industrial and office properties, leased to creditworthy tenants.

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