CHICAGO -- Trizec Properties, Inc. (NYSE:TRZ) today announced that it has modified and extended its unsecured credit facility with a syndicate of 25 lenders. The facility was jointly arranged by Deutsche Bank Securities Inc. and Banc of America Securities LLC. Other lead lenders are JPMorgan Chase, Bank of Montreal, Bank of Nova Scotia and ING Real Estate Finance (USA) LLC. Deutsche Bank Trust Company Americas will serve as Administrative Agent while Banc of America, N.A. will be the Syndication Agent.

The $750 million unsecured credit facility, which may be increased to $1 billion through an accordion feature, was extended for an additional 16 months and now matures in October 2008 and has a one-year extension option. The facility requires interest-only payments, with the interest rate established on a scale based upon the level of Trizec's total leverage. The initial interest rate is anticipated to be LIBOR plus 105 basis points, a reduction of 30 basis points compared to the terms of the prior credit facility.

The modified facility is fully revolving and replaces Trizec's prior $750 million unsecured facility that consisted of a $600 million revolving loan and a $150 million term loan. In addition, the modified terms of the facility include a lower interest rate, increased borrowing capacity and additional covenant flexibility. Trizec Holdings Operating LLC, a wholly owned subsidiary of Trizec Properties, Inc., is now the borrower under the new terms of the facility, with Trizec Properties, Inc. being guarantor.

Mike Colleran, Trizec's Executive Vice President and Chief Financial Officer commented, "With the enhanced flexibility and greater borrowing capacity under the new terms of the facility, Trizec will be in a much stronger position to execute its strategic objectives to further focus, enhance and expand its core office portfolio."

"We are pleased with the significant level of interest we received from the lending community to modify the terms of the facility and it is a confirmation of Trizec's strong financial position as one of the leading office real estate companies in the United States," Mr. Colleran added.