PNC Races Time to Close a $250 Million Syndication for UDR
When one of the country's largest Real Estate Investment Trusts (REITs) needed to refinance a $250 million term loan in less than 30 days, PNC hit the accelerator.
UDR, Inc. is an S&P 500 publically-traded REIT with a portfolio of nearly 60,000 units in 21 major markets across ten states. As part of its commitment to improving its portfolio, strengthening its balance sheet and enhancing financial flexibility, management needed to refinance existing indebtedness with a five year, $250 million unsecured term loan.
PNC had significantly increased its relationship with UDR over the last few years and was one of three financial institutions requested to bid on leading the transaction. When PNC presented a comprehensive term sheet to underwrite $75 million of the loan within 24 hours, the client was impressed and selected PNC as joint arranger.
PNC Capital Markets, LLC, acted as co-lead arranger for the term loan and PNC Bank, NA, served as the syndication agent. The deal was well-received and oversubscribed and the PNC team was able to underwrite, market and close the $250 million loan in less than four weeks. PNC Capital Markets also provided a substantial portion of a swap to effectively fix the interest rate.
Thanks to PNC's responsiveness, strength and knowledge of the multifamily business, UDR was able to reap the benefits of its refinancing strategy within a tight time frame.