W. P. Carey Announces New €500 Million Unsecured Term Loan

W. P. Carey Inc. has secured a new €500 million unsecured term loan, maturing on April 24, 2026, aimed at refinancing existing debt.

Rhea-AI Summary

W. P. Carey Inc. has secured a new €500 million unsecured term loan, maturing on April 24, 2026, aimed at refinancing existing debt. The loan features an accordion option to increase the total up to €750 million. The borrowing rate is set at 85 basis points over EURIBOR, and to manage interest costs, the company has executed a variable-to-fixed interest rate swap, fixing the rate at 4.34% until the end of 2024. This move is part of W. P. Carey's financing strategy, supported by ten lenders including JPMorgan Chase and BofA Securities. The company boasts a significant enterprise value of $24 billion and a robust portfolio comprising 1,449 net lease properties across approximately 176 million square feet, plus 84 self-storage facilities as of December 31, 2022.

Positive

• Secured a €500 million unsecured term loan, increasing liquidity.
• Fixed interest rate at 4.34% until the end of 2024, managing interest rate risk.
• Robust enterprise value of $24 billion enhances financial stability.

Negative

• None.

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NEW YORK, April 24, 2023 /PRNewswire/ -- W. P. Carey Inc. (W. P. Carey, NYSE: WPC) today announced that it has closed on a new €500 million unsecured term loan maturing on April 24, 2026 (the "Term Loan"), which was drawn in full at closing. The Term Loan also includes an accordion feature enabling the aggregate amount to be increased up to €250 million (for a Term Loan totaling up to €750 million), subject to obtaining lender commitments and the satisfaction of certain customary conditions.

The Term Loan borrowing rate pursuant to the credit agreement is 85 basis points over EURIBOR, based on W. P. Carey's credit ratings of BBB+ and Baa1. In conjunction with the closing of the Term Loan, W. P. Carey executed a variable-to-fixed interest rate swap that fixes the total per annum interest rate at 4.34% through the end of 2024. Proceeds from the Term Loan will be used for the repayment of debt, including amounts outstanding on the company's unsecured revolving credit facility.

A total of ten lenders participated in the Term Loan. JPMorgan Chase Bank, N.A. served as Administrative Agent, Joint Lead Arranger and Joint Bookrunner. BofA Securities, Inc. and Wells Fargo Bank, N.A. served as Joint Bookrunners and Joint Lead Arrangers, as well as Co-Syndication Agents. Barclays Bank PLC, PNC Bank, National Association and U.S. Bank National Association served as Joint Lead Arrangers and Documentation Agents. The Bank of New York Mellon, The Bank of Nova Scotia, Regions Bank and Royal Bank of Canada served as Senior Managing Agents.

W. P. Carey Inc.

Celebrating its 50^th anniversary, W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $24 billion and a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,449 net lease properties covering approximately 176 million square feet and a portfolio of 84 self-storage operating properties, as of December 31, 2022. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.

www.wpcarey.com

Certain of the matters discussed in this press release constitute forward-looking statements within the meaning of the Securities Act, and the Securities Exchange Act of 1934, as amended, both as amended by the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, among other things, statements regarding the intent, belief or expectations of W. P. Carey Inc., and may be identified by the use of words such as "may," "will," "should," "would," "could," "assume," "outlook," "seek," "plan," "believe," "expect," "anticipate," "intend," "estimate," "forecast" and other comparable terms. These forward-looking statements represent W. P. Carey Inc.'s expectations and beliefs concerning future events, and no assurance can be given that the future results described in this press release will be achieved. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results, performance or achievements of the companies. The factors and assumptions upon which any forward-looking statements herein are based are subject to risks and uncertainties; the risk factors set forth in W. P. Carey Inc.'s most recent Annual Report on Form 10-K for the year ended December 31, 2022; and other factors over which it has little or no control. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this communication may not occur. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication, unless noted otherwise. Except as required under the federal securities laws and the rules and regulations of the SEC, W. P. Carey Inc. does not undertake any obligation to publicly release any revisions to the forward-looking statements to reflect events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events.

Institutional Investors:
Peter Sands
1 (212) 492-1110
institutionalir@wpcarey.com

Individual Investors:
W. P. Carey Inc.
1 (212) 492-8920
ir@wpcarey.com

Press Contact:
Anna McGrath
1 (212) 492-1166
amcgrath@wpcarey.com

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SOURCE W. P. Carey Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the significance of WPC's new €500 million unsecured term loan?

The new €500 million unsecured term loan allows WPC to refinance existing debt and enhance liquidity, with an option to increase to €750 million.

What is the maturity date of the new term loan from WPC?

The maturity date of the new term loan is April 24, 2026.

What interest rate did WPC secure for its new term loan?

WPC secured a borrowing rate of 85 basis points over EURIBOR, effectively fixing the total interest rate at 4.34% through the end of 2024.

Who were the lenders involved in WPC's €500 million term loan?

Ten lenders participated, including JPMorgan Chase Bank, BofA Securities, and Wells Fargo Bank, among others.

What is WPC's enterprise value and portfolio size?

WPC has an enterprise value of approximately $24 billion, with a portfolio of 1,449 net lease properties covering around 176 million square feet.