Corporate Office Properties Trust (COPT) announced that, on August 3, 2012, it entered into a $120 million term loan agreement, with the option to expand the amount drawn during the term, subject to certain conditions, by $80 million, for a maximum loan of $200 million. The term loan has a seven-year term and a variable interest rate of LIBOR plus 2.10% to 2.60%, depending on the company’s leverage levels.

Wells Fargo Securities acted as sole arranger and sole bookrunner for the term loan. Wells Fargo Bank acted as administrative agent and Capital One acted as documentation agent.

The company used proceeds from the term loan to repay outstanding balances on its $1 billion unsecured line of credit that it entered into effective September 1, 2011. Additionally, the company exercised its right under the credit agreement to reduce the aggregate outstanding commitment by the lenders thereunder, effective August 10, 2012, to $800 million from $1 billion, while maintaining the right to further increase the aggregate commitment by an additional $500 million during the term, subject to certain conditions. No other changes to the terms of the credit agreement occurred.

COPT is an office REIT that focuses primarily on strategic customer relationships and specialized tenant requirements in the U.S. Government and Defense Information Technology sectors and Data Centers serving such sectors.