AR Capital Obtains Over $300 Million of Low Cost Financing for Three of Its Sponsored REITs
NEW YORK, May 29, 2012 /PRNewswire/ -- AR Capital, LLC ("AR Capital"), the sponsor of nine public real estate companies and a business development company, announced today that it has recently closed on or agreed to terms on over $300 million of financings at borrowing costs below 4 percent for three of its sponsored REITs: American Realty Capital Trust III, Inc. ("ARCT III"); American Realty Capital New York Recovery REIT, Inc. ("ARC NYRR"); and American Realty Capital Healthcare Trust, Inc. ("ARC Healthcare").
AR Capital's Chairman and CEO, Nicholas S. Schorsch, noted, "Our capital markets team, led by Andrew Winer and Boris Korotkin, has been consistently successful in arranging low cost, advantageous borrowings for AR Capital's investment programs. In this regard, we continue to both deepen and expand our lender relationships to the benefit of our stockholders."
Notable Recent Mortgage Transactions:
- ARC NYRR: Closed over $21 million of mortgage loans and have commitments on $31 million with 4 lenders at a cost aggregating under 3.75 percent.
- ARC Healthcare: Closed or rate locked over $23 million of mortgage loans with 2 lenders aggregating under 4.00 percent.
- ARCT III: Closed or rate locked over $90 million of mortgage loans and have commitments on another $31 million with 4 lenders aggregating under 3.80 percent.
Notable Recent Credit Facility Transactions:
- ARC NYRR closes facility with Capital One: In April 2012, ARC NYRR closed on a 3-year $40 million credit facility (expandable to $150 million). This facility has a cost of LIBOR + 250bps on drawn amounts and can be used for acquisitions and other corporate purposes based upon 55 percent to 65 percent of identified unencumbered assets.
- ARC Healthcare closes facility with Key Bank: In May 2012, ARC Healthcare closed on a 3-year $50 million credit facility (expandable to $250 million). This facility has a cost of LIBOR + 300-400bps on drawn amounts (depending on overall corporate leverage, the spread can be reduced by 35bps when net worth exceeds $350 million). This facility can be used for acquisitions and other corporate purposes based upon 55 percent to 65 percent of identified unencumbered assets.
- ARCT III agrees to terms on a facility with RBS Citizens: In March 2012, ARCT III agreed to terms on a 3-year $50 million credit facility (expandable to $250 million). This facility has a cost of LIBOR + 210-350bps on drawn amounts and can be used for acquisitions and other corporate purposes based upon 60 percent of identified unencumbered assets.
"While the market winds are currently at our back, it is important that all of AR Capital's companies be vigilant in preparing for different environments by continuing to grow our stable of lenders, maintaining a conservative low leverage strategy, and taking advantage of today's low rate environment to create stockholder value," said Andrew Winer, SVP of Debt Capital Markets at AR Capital.
AR Capital History and Focus: AR Capital was founded by Nicholas S. Schorsch, William M. Kahane, Michael Weil, Peter Budko and Brian Block in 2006 as a full-service real estate investment management firm providing advisory services to retail and institutional investors. Since its formation, AR Capital has consistently worked to introduce institutional best practices to the direct investment industry. AR Capital offers investors professionally managed investment solutions providing tax efficient current income with the potential for growth.
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