CPA:17 Inks $250 Million Credit Facility

Corporate Property Associates 17 – Global, a publicly registered non-traded real estate investment trust sponsored by W.P. Carey Inc. (NYSE: WPC), entered into a $250,000,000 credit agreement with JPMorgan Chase Bank N.A., as administrative agent, Bank of America N.A., as syndication agent, and a syndicate of other lenders.  J.P. Morgan Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as joint lead arrangers and bookrunners.  

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The credit agreement provides for a $200,000,000 senior unsecured revolving credit facility and a $50,000,000 delayed-draw term loan facility, with a maximum aggregate principal amount of $250,000,000 and an accordion feature of $250,000,000 subject to lender approval.  

Loans under the facilities will bear interest at applicable leverage-based rates set forth in the credit agreement.  The facilities are scheduled to mature on August 26, 2018, which may be extended for two 12-month periods by the company.  The facilities will be used for the working capital needs of the company and its subsidiaries, as well as for other general corporate purposes.

In March 2015, CPA:17 – Global’s board of directors and the board of directors of the company’s sponsor, W. P. Carey, approved unsecured loans from the sponsor to the company of up to $75,000,000 in the aggregate, at a rate equal to the rate at which W. P. Carey was able to borrow funds under its senior credit facility.  On August 26, 2015, CPA:17 – Global drew from the revolving credit facility to repay its outstanding W. P. Carey line of credit balance of $25,000,000 in full, and the line of credit was terminated.

W. P. Carey Inc. is a global net lease real estate investment trust specializing in corporate sale-leaseback financing, build-to-suit financing and the acquisition of single-tenant net lease properties.