American Campus $100 million term loan priced at Libor plus 150 to 237.5 bps

By Sara Rosenberg

New York, May 29 - American Campus Communities Inc.'s $100 million three-year senior secured term loan carries pricing that can range from Libor plus 150 basis points to 237.5 bps, depending on leverage, according to an 8-K filed with the Securities and Exchange Commission Thursday.

KeyBank is the lead bank on the deal that closed on May 23.

The term loan has a one-year extension option.

Proceeds will be used to help fund the acquisition of GMH Communities Trust for about $1.4 billion, including outstanding debt totaling about $963 million.

The company is also increasing its existing senior unsecured revolving credit facility to $160 million from $115 million.

Initially, the company planned on getting a $200 million term loan for the purchase, but the size was reduced following completion of a common stock offering. 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 buying GMH's student housing business, not its military housing business, which was already 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.

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

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