American Realty amends facility to change provisions on distributions to stockholders

By Jennifer Chiou

New York, Sept. 24 – American Realty Capital Healthcare Trust II Operating Partnership, LP and American Realty Capital Healthcare Trust II, Inc. entered into an amendment to their senior secured revolving credit agreement with KeyBank NA, modifying the terms of distributions to stockholders, according to an 8-K filed with the Securities and Exchange Commission.

Previously, American Realty Capital was permitted to make distributions to its stockholders only to the extent that the aggregate amount of distributions paid during the fiscal quarter and the previous three fiscal quarters did not exceed 95% of the company’s modified funds from operations (FFO).

With the amendment, from April 1 to Sept. 30, 2014, the company may make distributions in excess of that distribution limit so long as the distributions are paid in cash and consistent with the rate paid in the past.

From Oct. 1, 2014 to March 31, 2015, the distribution limit will increase to 125% from 95% of the company’s modified FFO, and from April 1, 2015 thereafter, the distribution limit will return to the original rate of 95% of the company’s modified FFO.

Notwithstanding these limits, the filing noted that the company is also permitted to pay distributions in an amount equal to the minimum necessary to maintain the company’s status as a REIT.

American Realty is a New York-based real estate investment trust focused on the health care industry.

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