New York REIT gets $260 million mezzanine loan at Libor plus 565 bps

By Susanna Moon

Chicago, Dec. 21 – New York REIT, Inc. obtained a $260 million mezzanine loan due January 2018 with Column Financial, Inc. as agent.

New York REIT also closed a new $500 million mortgage loan with Column, according to an 8-K filing with the Securities and Exchange Commission.

The company repaid its $485 million principal amount outstanding under its revolving credit and term loan facility with Capital One, NA using proceeds of the new loans.

Interest on the mezzanine loan requires monthly interest payments at an initial weighted average interest rate of Libor plus 565 basis points, and the mortgage loan has an initial weighted average interest rate of Libor plus 238 bps for a blended weighted average interest rate of Libor plus 350 bps. The Libor rates are capped at 3% by interest rate cap agreements.

The loans include a one-year extension option, subject to a 0.25% increase in the monthly interest rate.

Proceeds also were used to deposit $260 million in an operating account that may be used to purchase the additional equity interests in WWP Holdings, LLC, the joint venture that holds the property known as Worldwide Plaza.

Before the facility was repaid, all of the properties were included as part of the borrowing base.

The REIT is based in New York.

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