WPC Finalizes Merger with REIT Affiliate

NEW YORK CITY-The merger of W. P. Carey Inc. and Corporate Property Associates 16 – Global Incorporated, its publicly held, non-traded REIT affiliate, has closed, creating a net lease REIT with an equity market capitalization of about $5.9 billion and a total market cap of approximately $9.6 billion. In addition, WPC has obtained a senior unsecured credit facility totaling $1.25 billion.

"We believe that the positive balance sheet, earnings and AFFO impact of the merger with CPA:16—Global, along with the additional liquidity provided by the increased size of our credit facility, will continue to support W. P. Carey's position as the leading global net lease REIT,” says Trevor Bond, WPC's president and CEO. Coupled with the investment-grade credit ratings recently bestowed by Standard & Poor's and Moody's, “the closing of the merger and our increased credit facility reflect our strong business fundamentals and support our strategy of generating solid cash flows and stable dividend growth.”

Following the merger, WPC's global portfolio consists of more than 85 million square feet of corporate real estate leased to over 230 companies around the world. The company will continue to manage three other publicly held, non-traded REIT affiliates: CPA:17—Global,  CPA:18—Global and Carey Watermark Investors.

The new credit facility is comprised of a $1-billion revolving line of credit and a $250-million term loan as well as a $500-million accordion feature. Bank of America, N.A. and JPMorgan Chase Bank, N.A. acted as joint book runners and joint lead arrangers. 

The revolver will mature in four years with an option to extend for one year, while the term loan component has a two-year maturity with two separate one-year extension options. WPC repaid the $595 million of principal outstanding on its $625-million credit facility as well as $170 million of principal that CPA:16—Global had outstanding on its credit facility, each of which has been terminated, and says it expects to use the new facility primarily for potential new investments and general corporate purposes.