Carey Watermark gets $50 million revolver, draws $20 million on loans

By Tali Rackner

Norfolk, Va., Dec. 7 – Carey Watermark Investors Inc. and wholly owned subsidiary CWI OP, LP entered into a credit agreement on Dec. 4 with agent Wells Fargo Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for a $50 million senior unsecured revolving credit facility that matures on Dec. 4, 2017 and may be extended by one year.

Loans bear interest at Libor plus 275 basis points.

Proceeds will be used for the working capital needs of Carey Watermark and its subsidiaries, as well as for other general corporate purposes.

Certain financial covenants require the company to maintain a maximum total debt to asset value ratio of 0.65 times and a minimum fixed charge coverage ratio of 1.5 times from March 31, 2016 through Dec. 31, 2016, and 1.75 times thereafter.

In addition, the company drew down $20 million from its $110 million of unsecured loans to repay in full and terminate its outstanding W. P. Carey Inc. line of credit.

Carey Watermark is a New York-based real estate investment trust.

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