ARCP Receives Lender Waiver and Extension for Reporting 3rd Quarter Results

Having been in the news frequently over the last few weeks for its now famous accounting error and subsequent actions, American Realty Capital Properties (ARCP) has received a waiver, consent, and amendment from its lenders on its unsecured credit facility in addition to an extension for reporting its third quarter financial statements.

“This lender consent, waiver and amendment extends ARCP’s financial statement filing obligations to January 5, 2015 and we are working very diligently to have them completed before that time,” commented David S. Kay, Chief Executive Officer of ARCP.

As part of the consent, waiver, and amendment, ARCP has decided to reduce the maximum amount of indebtedness on its credit facility from $4.65 billion to $4.0 billion in order to make the size of the facility more appropriate with expected future use.

In addition, until the 2013 and 2014 financial statements are filed with the SEC, the maximum principal amount of indebtedness outstanding under the unsecured credit facility is reduced to $3.6 billion, temporarily. Currently, ARCP has about $3.2 billion outstanding on the credit facility and still has a capacity of $400 million available.

The company has also agreed to sustain a minimum unencumbered asset value of $10.5 billion. It currently totals approximately $13 billion.

“The right-sizing of the line enables us to meet our liquidity needs now, as well as our future capital needs, while reducing our credit facility fees. We greatly appreciate the support of our lenders while we work through the items outlined in our October 29 filings. We also want to thank our stakeholders for their continued patience as we work to resolve this matter.” added Mr. Kay.

ARCP hosted a webcast this morning, a replay of which is available on the company’s website.