ARC New York Recovery REIT enters USD220m credit facility with Capital One
American Realty Capital New York Recovery REIT’s New York Recovery Operating Partnership, has entered into a USD220m credit facility providing aggregate revolving and term loan borrowings of USD110m.
Through an "accordion feature," NYRR, subject to certain conditions, may increase borrowings under the credit facility to up to USD325.0m. The credit facility replaces NYRR's previous credit facility. NYRR has guaranteed the obligations under the credit facility.
NYRR expects to use the financing available under the credit facility along with cash on hand from ongoing operations to finance portfolio acquisitions and for general corporate purposes.
Capital One, National Association is the administrative agent under the credit facility and the lending syndicate is comprised of US Bank National Association, Key Bank National Association, TD Bank, NA and People's United Bank.
Michael Happel (pictured), chief investment officer of NYRR, says: "We are pleased to announce the commitment shown to us by our bank lending partner group. With up to USD325.0m of aggregate borrowings under our credit facility, we will have substantial balance sheet capacity to execute our acquisition strategy as we continue to implement our investment strategy."