American Realty Capital enters into new revolver via BMO Harris Bank

By Tali Rackner

Norfolk, Va., June 16 – American Realty Capital, through American Realty Capital Retail Operating Partnership, LP, entered into a credit agreement relating to a new revolving credit facility on June 11 that provides for borrowings of up to $100 million, a swingline subfacility of $25 million and a $5 million letter of credit subfacility, according to an 8-K filing with the Securities and Exchange Commission.

The operating partnership can increase commitments to up to $250 million. The facility will mature on June 11, 2018, but the company can extend the maturity date by one year.

BMO Capital Markets and Regions Capital Markets are the joint bookrunners and joint lead arrangers; BMO Harris Bank NA is the administrative agent, letter of credit issuer, swingline lender and a lender; and Regions Bank is the syndication agent.

Borrowings will initially bear interest at Libor plus a spread ranging from 150 basis points to 275 bps, depending on the company’s consolidated leverage ratio.

After the operating partnership acquires a tangible net worth greater than or equal to $500 million, borrowings will bear interest at Libor plus 135 bps to 225 bps.

Proceeds will be used to finance portfolio acquisitions and for general corporate purposes.

American Realty is a self-managed New York-based company focused on acquiring and owning single-tenant freestanding commercial properties subject to net leases with high credit quality tenants.

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