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Overview

Bank of China contributes $25 million USD to $1.5 billion USD syndicated revolving credit facility to W.P.Carey for working capital purposes in 2017

Commitments (Constant USD, 2023)$26,603,160
Commitment Year•2017Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 22, 2017
Last repayment (originally scheduled)
Feb 21, 2021

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Bank of America, N.A.
  • Bank of New York Mellon Corporation (BNY Mellon)
  • Bank of Nova Scotia (Scotiabank)
  • Barclays Bank PLC
  • BMO Harris Bank N.A.
  • Capital One, N.A.
  • Citizens Bank, N.A. (formerly Citizens Bank of Pennsylvania)
  • Fifth Third Bank
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • PNC Bank, National Association
  • Regions Financial Corporation (Regions Bank)
  • Signature Bank
  • U.S. Bank National Association
  • Wells Fargo Bank N.A.

Receiving agencies

Private Sector

  • W. P. Carey & Co. LLC

Loan description

$1.5 billion USD syndicated revolving credit facility to W.P.Carey for working capital purposes in 2017

Interest rate (t₀)•2.36294%Interest type•Variable Interest RateMaturity•4 years

Narrative

Full Description

Project narrative

On February 22, 2017, financial close was reached on a deal in which a syndicate of 15 banks — including Bank of China — entered into a $1,500,000,000 USD syndicated loan agreement with W.P. Carey Inc. — a United States-based real estate investment trust (REIT) that specializes in net lease commercial properties. The maturity of the loan is 4 years and the interest rate was LIBOR plus an applicable margin. The use of proceeds was for working capital needs of the company. The proceeds were used by the borrower for general working capital purposes — allowing W.P. Carey Inc. to manage short-term liquidity needs and ongoing operational expenses across its global real estate portfolio. While Bank of China contributed $25,000,000 USD to this loan, the following lenders also participated: Bank of America, N.A. ($151,136,986.29 USD), JPMorgan Chase Bank, N.A. ($151,136,986.29 USD), Wells Fargo Bank, N.A. ($151,136,986.30 USD), Barclays Bank PLC ($125,273,972.61 USD), Capital One, N.A. ($125,273,972.61 USD), U.S. Bank N.A. ($125,273,972.61 USD), Citizens Bank, N.A. ($105,068,493.15 USD), PNC Bank, N.A. ($105,068,493.15 USD), Regions Bank ($105,068,493.15 USD), The Bank of Nova Scotia ($80,821,917.81 USD), BMO Harris Bank, N.A. ($80,821,917.81 USD), Fifth Third Bank ($80,821,917.81 USD), The Bank of New York Mellon ($59,808,219.18 USD), and Signature Bank ($28,287,671.23 USD).

Staff comments

1. The entirety of the loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/1025378/000102537817000009/wpc20178-kamendcreditagree.htm The dropbox link for the original credit agreement is available via: https://www.dropbox.com/scl/fi/zg8woduom22mfrvonl1n7/Source_ID_217664.pdf?rlkey=yx63zx22qqj6w1wcclvoshw1a&st=c25wh4ws&dl=0 2. W.P. Carey Inc. is an American real estate investment trust headquartered in New York City, specializing in long-term net lease agreements with commercial tenants. The company owns and manages a diversified portfolio of high-quality, operationally critical commercial real estate across the U.S. and Europe. 3. AidData estimates the interest rate by adding the 6-month average LIBOR rate in February 2017 and an applicable margin based on credit ratings (BBB or 1%).