W.P. Carey & Co. signed a $185 million credit facility this month for general operating expenses, replacing a similar deal due to expire this month. John Park, cfo, says terms and covenants are almost identical. "It's to acquire, develop and retire existing debt," he explained. The New York-based company does lease-back financing to single-tenants in 40 states. He says the company's strategy is to diversify, rather than concentrate business in a particular section of the country. Park says the company actually benefits from a slowing economy. "As corporations find other forms of capital are scarce, they're turning to us for financing because they get better terms," he said.
J.P. Morgan Chase leads the deal and led the prior facility. The company did not go out to bid. "We were pleased with what they did on the last deal, and we're happy with the pricing they gave us," Park said. Pricing is based on a leverage grid ranging between 115 to 145 basis points over LIBOR. "We're pleased with the pricing,"Park said. "The company's credit profile has improved as we've gone through some transformation in the last few years."