American Realty lifts term loan to $235 million and amends pricing

By Marisa Wong

Madison, Wis., July 3 - American Realty Capital Trust, Inc., through its operating partnership American Realty Capital Operating Partnership, LP, amended and restated its interim term loan agreement led by Wells Fargo Bank, NA on July 2, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The term loan was increased to $235 million from $200 million, and the maturity date was deferred to June 30, 2017.

Borrowings now bear interest at Libor plus an applicable margin based on the company's leverage ratio or, at the company's election, based on its long-term senior unsecured debt ratings. The leverage-based margin ranges from 195 basis points to 275 bps, and the rating-based margin ranges from 115 bps to 235 bps.

As of July 2, the interest rate on the term loan was Libor plus 235 basis points, or 2.6%.

The amended and restated agreement also provides for an accordion feature that could expand the facility to $400 million.

In addition, certain financial covenants were modified in the restated term loan.

In connection with the amendment and restatement of the term loan, the company also changed certain financial covenants under its existing revolving credit facility with RBS Citizens, NA.

According to the filing, the revolver amendment, completed on July 2, is effective as of June 29.

The real estate investment trust is based in Jenkintown, Pa.

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