American Campus to get $45 million revolver add-on with GMH purchase

By Sara Rosenberg

New York, April 2 - American Campus Communities, Inc. will be increasing its existing senior unsecured revolving credit facility to $160 million from $115 million in connection with its acquisition of GMH Communities Trust, according to an S-4 filed with the Securities and Exchange Commission Wednesday.

As was previously reported, the company will also be getting a $200 million three-year term loan with the acquisition.

KeyBank is the lead banks on the credit facility.

The revolver has a $65 million accordion feature.

American Campus Communities is buying GMH Communities for about $1.4 billion, including outstanding debt totaling about $963 million.

This transaction relates solely to GMH's student housing business and not its military housing business, which will be sold in a separate transaction to a U.S. subsidiary of Balfour Beatty plc.

Under the agreement, each common share of GMH and each unit of GMH's Operating Partnership will be entitled to receive 0.07642 of a share of American Campus common stock and $3.36 in cash.

Closing is expected in the second quarter, subject to approval by GMH's shareholders and completion of the sale of its military housing division.

American Campus is an Austin, Texas, developer, owner and manager of student housing.

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