W.P. Carey merges with CPA 16
Obtains a senior unsecured credit facility
W.P. Carey Inc.’s (WPC) merger with its publicly held, non-traded real estate investment trust affiliate, Corporate Property Associates 16 – Global Incorporated, officially closed on Jan. 31.
The company issued approximately 30.7 million shares to CPA:16 – Global stockholders, with an exchange rate of 0.1830 shares of W.P. Carey common stock for each CPA:16 – Global share held at closing.
As a result, W.P. Carey now has an equity market capitalization of approximately $5.9 billion and a total market capitalization of approximately $9.6 billion.
The merger provides the company with improved quality of W.P. Carey's earnings through increased portfolio diversification and by continuing the shift in revenue mix toward stable real estate rental income.
Additionally, it enhances access to diverse, efficiently priced sources of capital.
"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,” Trevor Bond, president and CEO of W.P. Carey, stated.
“Along with our recent investment grade credit ratings 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," Bond said.
Meanwhile, W.P. Carey also announced it obtained a senior unsecured credit facility totaling $1.25 billion, which is composed of a $1 billion revolving line of credit and a $250 million term loan as well as a $500 million accordion feature.