W.P. Carey enters $1.6 billion, €236.33 million credit agreement

By Wendy Van Sickle

Columbus, Ohio, Feb. 23 – W.P. Carey Inc. entered into a third amended and restated credit agreement on Wednesday, providing for a $1.5 billion revolving credit facility, a €236,325,000 term loan and a $100 million delayed-draw term loan, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has a four-year term with two six-month extension options. The term loans each have five-year terms, and the delayed-draw term loan may be drawn in dollars, euros or pounds sterling any time prior to the one-year anniversary of closing.

The €236.33 million term loan was fully drawn at closing, and $95 million and €90.5 million was drawn on the revolver as of Thursday.

Initial interest is Euribor plus 110 basis points for the drawn term loan and Libor plus 100 bps for the revolver. The revolver and the delayed-draw term loan each have an initial 20-bps fee for unused commitment.

Depending on debt ratings, pricing on the revolver can range from Libor plus 85 bps to 155 bps. For the term loans, pricing can range from Euribor or Libor plus 90 bps to 175 bps.

The unused fee ranges from 12.5 bps to 30 bps.

Bank of America Merrill Lynch and JPMorgan Chase Bank, NA are the bookrunners and are lead arrangers along with Wells Fargo Bank, NA. Bank of America, NA is the administrative agent. Barclays Bank plc, Capital One, NA and U.S. Bank NA are the documentation agents.

Citizens Bank, NA, PNC Bank NA and Regions Bank are the senior managing agents, with Bank of Nova Scotia, BMO Harris Bank NA and Fifth Third Bank as managing agents.

The revolver has a $1 billion sublimit for currencies other than dollars, a $75 million sublimit for swingline loans and a $50 million sublimit for letters of credit.

There is an accordion feature permitting the total amount of revolving and term loans to be increased up to $2.35 billion.

Proceeds may be used for working capital and general corporate purposes.

New York-based W.P. Carey is a publicly traded REIT that provides long-term sale-leaseback and built-to-suit financing for companies worldwide.

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