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JENKINTOWN, PA-American Financial Realty Trust has expanded its existing secured line of credit with the Cayman Islands branch of Deutsche Bank AG to $400 million and renewed the facility through October 2008. The original $300-million facility had an expiration of August 2006. The renewal and increase “satisfies a significant refinancing requirement for 2006,” says Nicholas S. Schorsch, president and CEO, in a statement.

The new facility includes a $100-million sub-limit or portion specifically structured to provide a financing mechanism for the locally based REIT’s formulated price contract program. Through that program, American Financial acquires the fee or assumes the leasehold interests in the surplus bank branches of financial institutions on a pricing formula. It currently has 16 agreements to acquire such surplus properties from major banks. The new facility also provides funds for acquisitions, which are typically sale-leaseback transactions.

The line of credit has a floating interest rate of Libor plus from 125 to 250 basis points with the spread depending on the credit rating of the tenant. AFR paid a commitment fee equal to 1.25 basis points to Deutsche Bank, and the fee was prorated for the unexpired term of the original loan commitment.

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