American Realty Capital enters new $220 million term loan, revolver

By Marisa Wong

Madison, Wis., Aug. 22 - American Realty Capital New York Recovery REIT, Inc. entered into a credit agreement on Tuesday for a new $220 million credit facility that replaces its previous credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The new credit facility provides for revolving loan borrowings of up to $110 million and term loan borrowings of up to $110 million.

The revolver will mature on Aug. 20, 2016, and the term loan matures on Aug. 20, 2018.

Both the term loan and the revolver contain extension options to obtain additional commitments in minimum increments of $25 million, provided total borrowings under the credit facility do not exceed $325 million.

Interest is equal to Libor plus 150 basis points to 275 bps. Pricing is based on the company's corporate leverage, consolidated net worth and a minimum number of borrowing base properties in the borrowing base.

The company expects to use the new financing along with cash on hand from ongoing operations to finance portfolio acquisitions and for general corporate purposes.

Capital One, NA is the administrative agent, letter-of-credit issuer and swingline lender, and the lending syndicate is comprised of U.S Bank NA, Key Bank NA, TD Bank, NA and People's United Bank.

The real estate investment trust is based in New York.

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