Vereit to repay borrowings under term loan with new note offering

By Sarah Lizee

Olympia, Wash., Aug. 8 – Vereit Operating Partnership LP announced that it plans to use the proceeds of an offering of senior notes due 2027 to repay borrowings under its $500 million term loan facility, according to a 424B5 filing with the Securities and Exchange Commission.

Vereit also plans to use $10.3 million of cash on hand and borrowings under its revolving credit facility to repay the term loan.

The facility is scheduled to mature on June 30, 2018 and generally bears interest at Libor plus 115 basis points to 205 bps. As of June 30, the actual interest rate on the loan was 2.76%, but was fixed at 3.25% via the use of derivatives.

Vereit is a Phoenix, Ariz.-based owner and manager of a portfolio of retail, restaurant, office and industrial real estate assets.

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