Griffin Capital Net Lease REIT gets $150 million two-year revolver

By Angela McDaniels

Tacoma, Wash., Dec. 13 - Griffin Capital Net Lease REIT, Inc. entered into an amended and restated $150 million senior secured revolving credit facility, according to a Tuesday 8-K filing with the Securities and Exchange Commission.

The company said the initial size of the facility is $70 million. The company may request an increase in the facility by adding other banks to the lending group as it accumulates assets to build the borrowing base.

The interest rate is Libor plus 275 basis points, which is 275 bps less than the company's prior line of credit.

According to a prior 8-K filing, the company entered into the revolver on Nov. 18. At closing, $35.4 million of the revolver was used.

The revolver matures on Nov. 18, 2013. The company has a one-year extension option subject to a 0.25% fee.

Key Bank NA and Bank of America NA are the lenders. Kay Bank is the administrative agent, and Bank of America is the syndication agent. Key Bank Capital Markets and Bank of America Merrill Lynch are the bookrunners and lead arrangers.

The commitment fee is 0.15% of KeyBank's $35 million initial commitment and 0.4% of Bank of America's $35 million initial commitment. In addition, the company paid an arrangement fee of 0.15% of Bank of America's initial commitment to affiliates of KeyBank and Bank of America and an advisory fee of 0.325% of KeyBank's initial commitment to KeyBank.

The covenants cap the company's total leverage ratio at 65% and require it to maintain a minimum interest coverage ratio of 1.85 to 1.

"This increased borrowing capacity comes at a key time for our REIT, as we have several potential acquisition properties that we intend to close between now and the end of the first quarter of 2012," Kevin Shields said in a company news release. Shields is chairman and chief executive officer of Los Angeles-based Griffin Capital Corp., Griffin Capital Net Lease's sponsor.

Griffin Capital Net Lease is a real estate investment trust based in El Segundo, Calif., with a focus on office and industrial properties.

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