W. P. Carey Inc. entered into a third amended and restated credit agreement, by and among W. P. Carey, as borrower, the Guarantors from time to time party thereto, the Lenders from time to time party thereto, Bank of America, N.A., as Administrative Agent, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, JPMorgan Chase Bank, N.A. and Wells Fargo Securities, LLC as Joint Lead Arrangers. The Third Amended and Restated Credit Facility amends and restates the credit facility dated as of January 31, 2014, by and among W. P. Carey, certain Guarantors, the Administrative Agent and certain Lenders party thereto.
The Third Amended and Restated Credit Facility provides the Borrower with a revolving loan facility with an aggregate principal amount of up to $1.5 billion, which matures on the fourth anniversary of the Closing Date, and may be extended by two six-month periods at the option of the Borrower, subject to the conditions to extension provided in the Third Amended and Restated Credit Facility. As of February 23, 2017, the Revolving Loan Facility had $95.0 million and €90.5 million outstanding.
Additionally, the Third Amended and Restated Credit Facility provides the Borrower with a term loan facility in an aggregate principal amount of €236,325,000, the proceeds of which were drawn on the Closing Date and a delayed draw term loan facility in an aggregate principal amount of up to $100.0 million. The Delayed Draw Term Facility may be drawn in U.S. dollars, euro or pounds sterling in a single draw on or prior to the first anniversary of the Closing Date. Both the Term Facility and the Delayed Draw Term Facility mature on the fifth anniversary of the Closing Date.
As of the Closing Date, for borrowings made under the Revolving Loan Facility, the Applicable Rate for Eurocurrency Rate loans and letters of credit was 1.00% plus the London Interbank Offered Rate and, for borrowings under the Term Facility, the Applicable Rate for Eurocurrency Rate loans was 1.10% plus the Euro Interbank Offered Rate and for Base Rate loans was 0.10%. W. P. Carey will pay a 0.20% facility fee on the commitments under the Revolving Loan Facility and a fee of 0.20% on the unused commitments under the Delayed Draw Term Facility prior to the draw or termination of such commitments.
The Third Amended and Restated Credit Facility also permits (i) a sub-limit for up to $1.0 billion under the Revolving Loan Facility to be borrowed in certain currencies other than U.S. dollars, (ii) a sub-limit for swing line loans of up to $75.0 million under the Revolving Loan Facility, and (iii) a sub-limit for the issuance of letters of credit under the Revolving Loan Facility in an aggregate amount not to exceed $50.0 million. The aggregate principal amount (of revolving and term loans) available under the Third Amended and Restated Credit Facility may be increased up to an amount not to exceed the U.S. dollar equivalent of $2.35 billion, and may be allocated as an increase to the Revolving Loan Facility, the Term Facility, or the Delayed Draw Term Facility, or if the Term Facility has been terminated, an add-on term loan, in each case subject to the conditions to increase provided in the Third Amended and Restated Credit Facility.
The Third Amended and Restated Credit Facility includes financial maintenance covenants, including a maximum leverage ratio, maximum secured debt ratio, minimum fixed charge coverage ratio, minimum unsecured interest coverage ratio and maximum debt to unencumbered asset value ratio. The Third Amended and Restated Credit Facility also contains various affirmative and negative covenants applicable to Borrower and its subsidiaries, subject to materiality and other qualifications, baskets and exceptions as outlined in the Third Amended and Restated Credit Facility.