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American Campus Communities Announces Closing of a Combined $650 Million Credit Facility

^{Published on 2011-05-25 11:45:58 - Market Wire}
 

AUSTIN, Texas--([ BUSINESS WIRE ])--American Campus Communities, Inc. (NYSE:ACC), one of the nationa™s largest owners, managers and developers of high-quality student housing properties, announced today the closing of a combined $650 million credit facility, consisting of a $450 million unsecured revolving credit facility and a $200 million unsecured term loan facility. The initial term of the revolving credit facility is three years and the term loan facility has an initial term of four years. Both facilities may be extended at the companya™s option for an additional one year period. The revolving credit facility also contains an accordion feature, which allows American Campus to increase the size of the facility by an additional $150 million. Borrowing rates under the facilities float at a margin over LIBOR based on a grid tied to the companya™s leverage ratio. Based on American Campusa™ current leverage ratio, the LIBOR margin at closing was 200 basis points.

"This new credit facility provides significant capacity for funding our growth pipeline through an unsecured structure consistent with the companya™s goal of obtaining an investment grade credit rating"

Proceeds from the term loan facility were used to repay the $100 million construction loan on the companya™s on-campus Vista del Sol project at Arizona State University and the $100 million existing secured term loan facility. KeyBank National Association and J.P. Morgan Securities LLC were the joint bookrunners and joint lead arrangers and eight additional banks contributed commitments to the combined facility.

aThis new credit facility provides significant capacity for funding our growth pipeline through an unsecured structure consistent with the companya™s goal of obtaining an investment grade credit rating,a said Bill Bayless, American Campus CEO. aWe are thankful to have a great bank group that has supported American Campus in its many phases of growth over the years. They are a key partner in the successes our company has enjoyed since going public.a

About American Campus Communities

American Campus Communities, Inc. is one of the largest developers, owners and managers of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management, and operational management of student housing properties. American Campus Communities owns 102 student housing properties containing approximately 63,700 beds. Including its owned, joint venture and third-party managed properties, ACC's total managed portfolio consists of 137 properties with approximately 89,000 beds. Visit [ www.americancampus.com ] or [ www.studenthousing.com ].

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which American Campus operates, management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.