CapLease Inc., New York, has entered into an amendment to its secured revolving credit agreement with Wells Fargo Bank NA.
The new facility has a capacity of $140 million, including over $40 million to finance new investment opportunities. The deal provides for a three year term, running until July 16, 2013, and an interest rate of Libor plus 275 basis points. The revolving nature of the facility allows CapLease to repay borrowings without any prepayment premium or defeasance cost and then to re-borrow against the collateral from time to time.
"We lowered our borrowings under the facility by an additional $13.4 million, to $96.4 million, using cash on hand to further reduce recourse liabilities," said Paul McDowell, chairman and chief executive of CapLease. He added CapLease has over $55 million of cash on hand.
