XML 30 R15.htm IDEA: XBRL DOCUMENT v2.3.0.15
Debt
9 Months Ended
Sep. 30, 2011
Debt Disclosure [Abstract] 
Debt Disclosure [Text Block]

Note 9.       Debt

Lines of Credit

 

We have a $250.0 million unsecured revolving line of credit with various lenders that matures in June 2012. This unsecured line of credit provides for an annual interest rate, at our election, of either (i) LIBOR plus a spread that ranges from 75 to 120 basis points depending on our leverage, or (ii) the greater of the lender's prime rate and the federal funds effective rate, plus 50 basis points. In addition, we pay an annual fee ranging between 12.5 and 20 basis points on the unused portion of the unsecured line of credit, depending on our leverage ratio. Based on our leverage ratio at September 30, 2011, we pay interest at LIBOR, or 0.25% at that date, plus 90 basis points and pay 15 basis points on the unused portion of the unsecured line of credit. At September 30, 2011, the outstanding balance on the unsecured line of credit was $243.2 million, an increase of $101.4 million since December 31, 2010. Net borrowings under our unsecured line of credit were primarily used to fund the purchase of CPA®:16 – Global shares from CPA®:16 – Global in order to facilitate the CPA®:14/16 Merger (Note 3). In addition, as of September 30, 2011, our lender had issued letters of credit totaling $6.8 million on our behalf in connection with certain contractual obligations. When issued, letters of credit reduce amounts that may be drawn under the unsecured line of credit.

 

On May 2, 2011, we obtained a $30.0 million secured revolving line of credit from Bank of America. The secured line of credit provides for an annual interest rate (as defined in the credit facility agreement) of either: (i) the “Adjusted LIBO Rate” plus 2.5%, or (ii) the “Alternative Base Rate” plus 3.50%. In addition, we paid a commitment fee of 0.25%, or $0.1 million, and are required to pay a 0.5% annual fee on the unused portion of the line of credit. This new line of credit is collateralized by five properties with a carrying value of approximately $51.0 million at September 30, 2011, and is coterminous with the unsecured line of credit, expiring in June 2012. At September 30, 2011, the outstanding balance on this line of credit was $10.0 million with an annual interest rate of Adjusted LIBO Rate plus 2.5%, or 2.8%. Borrowing under this line of credit was used to fund tax payments primarily related to the cash receipts from the CPA®:14/16 Merger.

 

The secured line of credit facility agreement stipulates six financial covenants that are similar to those of our unsecured revolving line of credit, as discussed in our 2010 Annual Report, which require us to maintain certain ratios and benchmarks at the end of each quarter. We were in compliance with the covenants on both our secured and unsecured lines of credit at September 30, 2011.

 

Non-Recourse Debt

 

Non-recourse debt consists of mortgage notes payable, which are collateralized by the assignment of real property, and direct financing leases, with an aggregate carrying value of $439.4 million at September 30, 2011. Our mortgage notes payable had fixed annual interest rates ranging from 3.1% to 7.8% and variable annual interest rates ranging from 1.2% to 7.3% with maturity dates ranging from 2012 to 2020 at September 30, 2011.

 

In connection with our acquisition of three properties from CPA®:14 in May 2011 as part of the CPA®:14 Asset Sales (Note 4), we assumed two non-recourse mortgages with an aggregate fair value of $87.6 million (and a carrying value of $88.7 million) on the date of acquisition and recorded a net fair market value adjustment of $1.1 million. The fair market value adjustment will be amortized to interest expense over the remaining lives of the loans. These mortgages have a weighted-average annual fixed interest rate and remaining term of 5.8% and 8.3 years, respectively.

 

During the nine months ended September 30, 2011, we refinanced two maturing non-recourse mortgages totaling $10.5 million with new financing totaling $11.9 million and obtained new financing on an unencumbered property of $5.0 million at a weighted-average annual interest rate and term of 5.1% and 5.2 years, respectively. Additionally, during the nine months ended September 30, 2011, Carey Storage borrowed a total of $4.0 million that is secured by individual mortgages on, and cross-collateralized by, ten properties in the Carey Storage portfolio. These borrowings have a weighted-average annual interest rate and term of 6.8% and 8.2 years, respectively.

 

Scheduled Debt Principal Payments

 

Scheduled debt principal payments during each of the next five calendar years following September 30, 2011 and thereafter are as follows (in thousands):

 

      
    Total
2011 (remainder)   $ 2,352
2012 (a)     290,825
2013     8,875
2014     12,651
2015     49,017
Thereafter through 2020     225,885
      589,605
Fair market value adjustments     (1,091)
Total   $ 588,514
      

___________

 

  • Includes $243.2 million and $10.0 million outstanding under our unsecured and secured lines of credit, respectively, at September 30, 2011.

 

Certain amounts in the table above are based on the applicable foreign currency exchange rate at September 30, 2011.