American Realty Capital Trust, Inc. (ARCT) said that it plans to prepay approximately $161.3 million of mortgage notes in the beginning of the second quarter of 2012.
The company said that it expects both Funds from operations and Adjusted Funds from operations on an annualized basis for the 12-month period commencing April 1, 2012 to be in the range of $0.79 to $0.82 per share, and net income per share of $0.144 - $0.174.
The company also announced it has received a commitment from Wells Fargo Bank, National Association to enter into a senior secured interim term loan in the amount of up to $200 million.
The company noted that it has also engaged Wells Fargo Bank, National Association to enter into a senior secured five-year term loan facility . The Interim Loan will have a term of six months. The company expects that the Interim Loan will bear interest at LIBOR plus 1.95% or approximately 2.20%. The Term Loan will have a term of five years.
The Company expects that the Term Loan will bear interest at a fixed rate based on the then-current five-year Treasury swap rate plus 1.95% (or approximately 3.20% currently), after giving effect to expected swap arrangements, for the full loan term.
The company said that it expects to use the proceeds from the Credit Facility to prepay approximately $161.3 million of its outstanding fixed rate mortgage indebtedness.
The expected annual interest savings to the Company from the prepayment of mortgage debt is approximately $4.3 million. The Credit Facility will increase the Company's unencumbered asset pool to approximately $1.24 billion.
The Company also confirmed the successful completion of its modified "Dutch auction" tender offer for the purchase of up to $220 million of shares of its common stock. Approximately 20.95 million shares were accepted under the tender offer at a price of $10.50 per share.
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