NEWPORT BEACH, Calif., April 14 /PRNewswire/ -- Pacific Gulf Properties
Inc. (NYSE: PAG) today reported that it has entered into a $150 million
unsecured revolving credit facility which replaces its previous secured
$65 million credit facility.
The Company announced that the interest rate payable under the new
facility was reduced to LIBOR plus 1.25% from LIBOR plus 1.75%. Upon reaching
certain leverage ratios, this rate can be reduced to as low as LIBOR plus
1.1O%, with the ability for further reduction upon achieving certain
investment grade ratings. The Company will use the facility to finance
acquisitions and for general corporate purposes.
The facility, which matures in April 2001, is syndicated to a group of
four banks. Wells Fargo Bank arranged the syndicate and is acting as
administrative agent for the facility, with Bank of America acting as
documentation agent, and Dresdner Bank and Key Bank participating.
"The new facility, replacing the Company's previous secured facility,
recognizing Pacific Gulf's improving balance sheet and provides the Company
with increased flexibility and enhanced capability to continue our growth,"
stated Donald G. Herrman, Executive Vice President and Chief Financial
Officer. "During the first quarter of 1998, we have acquired over $55 million
in industrial properties and continue to see favorable acquisition
opportunities in our pipeline," said Glenn L. Carpenter, Chairman of the Board
and Chief Executive Officer.
Forward-looking statements and comments in this press release are made
pursuant to the safe harbor provisions of Section 21E of the Securities
Exchange Act of 1934. Such statements relating to, among other things,
events, conditions, prospects and financial trends that may affect the
Company's future plans of operations, business strategy, growth of operations
and financial position, are not guarantees of future performance and are
necessarily subject to risks and uncertainties, some of which are significant
in scope and nature, including without limitation, increased competition,
adverse economic trends, increasing interest rates and other factors.
Pacific Gulf Properties Inc., a self-administered and self-managed equity
real estate investment trust, owns, operates, leases, acquires, rehabilitates
and develops industrial and multifamily properties located in selected markets
within the western United States.
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 671475
CONTACT:
Donald G. Herrman, Chief Financial Officer,
or Cindy L. Smith, Investor Relations, of Pacific Gulf
Properties, Inc., 714-223-5000
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