At December 31, 2009, our cash resources consisted of the following:
• Cash and cash equivalents totaling $18.5 million. Of this amount, $5.6 million, at then current exchange rates, was
held in foreign bank accounts, and we could be subject to restrictions or significant costs should we decide to
repatriate these amounts;
• A line of credit with unused capacity of $139.0 million, all of which is available to us and which may also be used to
loan funds to our affiliates. Our lender has issued letters of credit totaling $7.0 million on our behalf in connection
with certain contractual obligations, which reduce amounts that may be drawn under this facility; and
• We also had unleveraged properties that had an aggregate carrying value of $223.3 million, although given the current
economic environment, there can be no assurance that we would be able to obtain financing for these properties.
Our cash resources can be used for working capital needs and other commitments and may be used for future investments. We
continue to evaluate fixed-rate financing options, such as obtaining non-recourse financing on our unleveraged properties. Any
financing obtained may be used for working capital objectives and/or may be used to pay down existing debt balances. A
summary of our secured and unsecured credit facilities is provided below (in thousands):
December 31, 2009 December 31, 2008
Outstanding Maximum Outstanding Maximum
Balance Available Balance Available
Line of credit $ 111,000 $ 250,000 $ 81,000 $ 250,000
Secured credit facility N/A N/A 35,009 35,009
$ 111,000 $ 250,000 $ 116,009 $ 285,009
Line of credit
We have a $250.0 million unsecured revolving line of credit, that is scheduled to mature in June 2011. Pursuant to its terms, the
line of credit can be increased up to $300.0 million at the discretion of the lenders and, at our discretion, can be extended for an
additional year subject to satisfying certain conditions and the payment of an extension fee equal to 0.125% of the total
commitments under the facility at that time.
The 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. At December 31, 2009, the average interest rate on advances on the line of credit was 1.3%. In addition, we pay
an annual fee ranging between 12.5 and 20 basis points of the unused portion of the line of credit, depending on our leverage
ratio. Based on our leverage ratio at December 31, 2009, we pay interest at LIBOR plus 75 basis points and pay 12.5 basis points
on the unused portion of the line of credit. The line of credit has financial covenants that among other things require us to
maintain a minimum equity value, restrict the amount of distributions we can pay and requires us to meet or exceed certain
operating and coverage ratios. We were in compliance with these covenants at December 31, 2009.
Secured credit facility
Carey Storage had a credit facility for up to $105.0 million that provided for advances through March 8, 2008, after which no
additional borrowings were available. The credit facility itself was scheduled to expire in December 2008; however, pursuant to
its terms, in December 2008 we exercised an option to extend the maturity date of the credit facility for an additional year on
substantially the same terms. In January 2009, Carey Storage repaid, in full, the $35.0 million outstanding under this credit
facility at a discount for $28.0 million and terminated the facility (See Carey Storage Activity above).
During 2010, we expect that cash payments will include paying distributions to shareholders and to our affiliates who hold
noncontrolling interests in entities we control and making scheduled mortgage principal payments, including mortgage balloon
payments totaling $11.6 million, as well as other normal recurring operating expenses. In January 2010, we made a balloon
payment of $2.2 million for a maturing mortgage loan.
We expect to fund future investments, any capital expenditures on existing properties and scheduled debt maturities on non-
recourse mortgage loans through use of our cash reserves or unused amounts on our line of credit.
W. P. Carey 2009 10-K — 36