COPT Defense Properties amends and expands credit facilities to $800 million

Published 10/10/2025, 21:42
COPT Defense Properties amends and expands credit facilities to $800 million

COPT Defense Properties (NYSE:CDP) announced Monday that it entered into a second amendment to its credit agreement, increasing the aggregate commitment under its unsecured revolving credit facility from $600 million to $800 million. The amendment also modifies the terms of the company’s unsecured term loan facility.

The changes to the revolving credit facility include the ability to issue up to $100 million in letters of credit and up to $100 million in same-day draw requests under a swingline subfacility. The maturity date of the revolving credit facility has been extended from October 26, 2026, to October 5, 2029, with the option for COPT Defense Properties, L.P. to further extend the maturity by two additional six-month periods, subject to certain conditions and payment of an extension fee. The company’s proven track record includes maintaining dividend payments for 34 consecutive years, with a current attractive yield of 4.35%.

Interest rates for the revolving credit facility are now based on either the Secured Overnight Financing Rate (SOFR) plus a margin ranging from 0.725% to 1.400%, or an alternative rate based on the prime rate, federal funds rate, or SOFR, plus an additional margin. The applicable rate is determined by the company’s credit ratings. The facility also includes a quarterly fee based on the average daily commitment, ranging from 0.125% to 0.300%.

For the unsecured term loan, the amendment adjusts the interest terms to allow selection between SOFR plus 0.85% to 1.700%, or an alternative rate structure, with the rate determined by credit ratings. The maturity date for the term loan remains January 30, 2026, with the option for two 12-month extensions, subject to conditions and an extension fee.

The amendment also increases the capacity for future borrowing, allowing the company to request up to an additional $575 million in aggregate under the amended credit agreement, up from $525 million, subject to lender approval and provided there is no default.

The lending group includes KeyBank National Association, PNC Bank, TD Bank, M&T Bank, Wells Fargo, Fifth Third Bank, JPMorgan Chase, and Synovus Bank.

This information is based on a press release statement filed with the Securities and Exchange Commission. For a comprehensive analysis of CDP’s financial health, debt metrics, and growth potential, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.

In other recent news, COPT Defense Properties reported its second-quarter earnings for 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $0.34, compared to the forecast of $0.33. The company also exceeded revenue projections, reporting $189.92 million against an anticipated $175.02 million. Additionally, COPT Defense Properties announced the pricing of a $400 million public offering of 4.500% Senior Notes due 2030, which the company will fully guarantee. The offering is expected to close on October 2, 2025, subject to customary closing conditions.

The Board of Trustees of COPT Defense Properties declared a regular quarterly dividend of $0.305 per common share for the third quarter, with an annualized amount of $1.22 per share. This dividend will be payable on October 16, 2025, to shareholders on record as of September 30, 2025. Cantor Fitzgerald initiated coverage on COPT Defense Properties with an Overweight rating, setting a price target of $35.00, indicating a potential 19.5% upside from current levels. This analysis was based on a 2026 estimated AFFO multiple of 17.7x, compared to a 15.9x average for property sector peers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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