form8k.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
Current
Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of
1934
Date of
Report (Date of Earliest Event Reported): November 20, 2008 (November 17,
2008)
ESSEX
PROPERTY TRUST, INC.
(Exact
Name of Registrant as Specified in its Charter)
001-13106
(Commission
File Number)
|
Maryland
|
77-0369576
|
|
(State
or Other Jurisdiction of Incorporation)
|
(I.R.S.
Employer Identification No.)
|
925
East Meadow Drive, Palo Alto, California 94303
(Address
of principal executive offices) (Zip Code)
(650)
494-3700
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
name or former address, if changed since last report.)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
1.01. Entry Into a Material Definitive Agreement.
On
November 17, 2008, Essex Property Trust, Inc. (the “Company”) through Essex
Portfolio, L.P. (the "Operating Partnership") entered into a new five-year
secured line of credit facility with Freddie Mac that replaced the existing
secured line of credit facility that will mature in January 2009. The
new secured facility will expand the existing facility from $100 million to $150
million, and the new facility will be expandable to $250 million at anytime
during the first two years. The obligations of the Company under the
new facility are secured by cross-collateralized first priority mortgages on 8
of the Company's multifamily properties. The proceeds will be used to fund the
development pipeline and for future investments.
The
interest rate on a 30-day borrowing under the facility is a margin of between 99
and 150 basis points over the corresponding Freddie Reference
Rate. This margin depends on the corresponding loan to value and debt
service coverage of the underlying assets securing the facility. The
Company plans to maintain a level of secured assets underlying the facility to
utilize the lowest margin but there can be no assurance that will
occur.
The
margin also increases to the extent of borrowings of greater than 30
days. For borrowings of 90 days, the margin is increased by 5 basis
points over the 30 day rate. For borrowings of 180 days, the margin
is increased by 15 basis points over the 30 day rate and for borrowings of 360
days the margin is increased by 30 basis points over the 30 day
rate.
The
interest rate pricing for the expansion of the commitment to $250 million will
be in place to the extent the line is expanded during the first two years of the
term.
After the
third year, Freddie Mac may adjust the interest rate pricing on this
facility. If the pricing increases, and the Company does not accept
the increased pricing, the Company may terminate the facility at no
cost.
Item
2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of Registrant.
The
information set forth in item 1.01 is incorporated herein by
reference.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Essex
Property Trust, Inc.
/s/ Michael T.
Dance
Name:
Michael T.
Dance
Title:
Executive Vice President &
Chief Financial Officer
Date:
November 20, 2008