GMH Communities gets $250 million revolver

By Sara Rosenberg

New York, Oct. 4 - GMH Communities Trust closed on a new $250 million six-month secured revolving credit facility, according to a company news release.

Wachovia acted as the lead bank on the deal.

Pricing on the revolver is Libor plus 200 basis points.

Proceeds were used to repay about $128 million of outstanding bank debt under a $150 million unsecured revolver due November 2007 with Bank of America that was then terminated.

The company also will use the revolver to fund the equity needed for the previously announced Capstone portfolio transaction, which is expected to fully close by Oct. 9, as well as for general working capital purposes.

"The financial covenants under the new facility are better suited to the company's current operating metrics and provide for greater flexibility with respect to payment of the company's dividend distributions than under our former facility. In addition, the short-term nature of this facility makes sense for us right now in light of the ongoing special committee process," said J. Patrick O' Grady, executive vice president and chief financial officer, in the release.

GMH Communities Trust is a Newtown Square, Pa.-based real estate investment trust focused on providing housing to college and university students.

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