American Realty gets lender waiver for more time to file Q3 financials

By Susanna Moon

Chicago, Nov. 14 – American Realty Capital Properties, Inc. said it obtained lender consent, waiver and amendment to its unsecured credit facility to extend the delivery of its 2014 third-quarter financial statements until Jan. 5.

The action allows the company to remain compliant with its borrowing obligations as the company’s external auditors complete their review of the 2013 and 2014 financial statements, according to a company press release.

As part of the consent, waiver and amendment, in order to better align the size of the facility with expected future usage, the company said it has elected to permanently reduce the maximum amount of debt to $4 billion from $4.65 billion.

The company has also agreed to maintain a minimum unencumbered asset value of at least $10.5 billion, which totals about $13 billion.

Also, until the 2013 and 2014 financial statements are filed with the U.S. Securities and Exchange Commission, the maximum principal amount of debt outstanding under the unsecured credit facility will be temporarily reduced to $3.6 billion.

Currently, the company has about $3.2 billion outstanding on the credit facility with $400 million of capacity left.

“This lender consent, waiver and amendment extends ARCP’s financial statement filing obligations to Jan. 5, and we are working very diligently to have them completed before that time,” David S. Kay, the company’s chief executive officer, said in the press release.

“The right-sizing of the line enables us to meet our liquidity needs now, as well as our future capital needs, while reducing our credit facility fees.”

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.