American Campus reduces term loan for GMH acquisition to $100 million

By Sara Rosenberg

New York, May 9 - American Campus Communities, Inc. now only plans on getting a $100 million three-year term loan for its purchase of GMH Communities Trust, as opposed to a $200 million term loan, according to a 10-Q filed with the Securities and Exchange Commission Friday.

The company still intends to increase its existing senior unsecured revolving credit facility to $160 million from $115 million

KeyBank is the lead bank on the credit facility.

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, holders of 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.

In April, the company sold 9.2 million shares of its common stock for net proceeds of $252.4 million, of which a portion will be used for acquisition financing. Originally, the company only planned on selling 4.5 million shares, plus 675,000 under an over-allotment option.

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

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