Carter Validus lifts loan commitments to $110 million, adds lender

By Susanna Moon

Chicago, March 19 - Carter/Validus Operating Partnership, LP, the operating partnership of Carter Validus Mission Critical REIT, Inc., boosted its loan commitments under a credit facility to $110 million, according to an 8-K filing with Securities and Exchange Commission.

The facility consists of a $55 million revolving line of credit due Nov. 19, 2015 and a $55 million term loan due Nov. 19, 2016.

The revolver and term loan both have a 12-month extension option.

The company amended the facility on March 15 to add Capital One, NA as a lender and increased the commitments from $75 million.

Interest on the loans ranges from Libor plus 250 basis points to 350 bps.

The company entered into a term loan with Capital One and borrowed $17.5 million under the agreement.

Carter/Validus also entered into an interest swap agreement with KeyBank NA to effectively fix Libor on the new term loan at 1%, resulting in an interest rate under the new term loan ranging from 3.5% to 4.5%. The term of the swap agreement on the new term loan is 4.5 years.

The facility may be prepaid prior to maturity without penalty, provided that no portion of the term loan that is prepaid may be reborrowed, and the company may be subject to a breakage fee under the swap agreement.

The borrowing base availability under the KeyBank facility will be a maximum principal amount of the value of the assets that are included in the collateral pool.

As of March 15, the borrowing base availability under the KeyBank facility was $66,368,000.

And as of March 15, the company had drawn $55 million under the term loan and had about $11,368,000 remaining available under the revolving line of credit.

Recent upsizing

On Nov. 26, 2012 the company lifted the commitments under its line of credit to $75 million.

The facility consisted of a $37.5 million revolving line of credit due Nov. 19, 2015 and a $37.5 million term loan due Nov. 19, 2016, each with a 12-month extension option.

Interest on the loans was initially Libor plus 325 basis points, based on leverage, with a spread of Libor plus 250 bps to 350 bps.

At the time, the company entered into a five-year interest rate swap agreement with KeyBank to fix Libor on the term loan at 0.86%, resulting in an interest rate of 3.36% to 4.36% per year.

The company amended its credit agreement on Nov. 19 with KeyBank NA as agent and KeyBanc Capital Markets as lead arranger and bookrunner, according to a previous 8-K filing.

The size of the commitments was raised from $55 million.

As of Nov. 21, 2012, the Tampa, Fla.-based company had drawn down $37.5 million under the term loan and about $37.5 million remaining under the revolving line of credit.

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