New York REIT pays down $485 million credit facility with Capital One

By Susanna Moon

Chicago, Dec. 21 – New York REIT, Inc. repaid its $485 million principal amount outstanding under its revolving credit and term loan facility with Capital One, NA using proceeds of a new loan, according to an 8-K filing with the Securities and Exchange Commission.

The facility was repaid Tuesday at the closing of a new $500 million mortgage loan and $260 million mezzanine loan due January 2018 with Column Financial, Inc. as agent and initial lender.

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.

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

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

The REIT is based in New York.

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