NETSTREIT Corp. Announces $250.0 Million Term Loan and Amended and Extended $175.0 Million Term Loan
July 06 2023 - 4:13PM
Business Wire
NETSTREIT Corp. (the “Company”) today announced the closing of a
three-year $250.0 million sustainability-linked senior unsecured
term loan facility with a 12-month delayed draw feature (the “Term
Loan”). The Term Loan initially matures in July 2026 and includes,
at the Company's election, two one-year options and one six-month
option to extend the maturity of the Term Loan to January 2029
(5.5-year term). The Term Loan includes an accordion feature that
allows the Company to request up to $400.0 million of total lender
commitments. At close on July 3, 2023, the initial amount drawn on
the Term Loan was $150.0 million, and the Company has hedged the
entire $250.0 million Term Loan at an all-in fixed interest rate of
4.99% through January 2029, which consists of a fixed rate SOFR
swap of 3.74%, plus a credit spread adjustment of 0.10% and, at
current leverage levels, a borrowing spread of 1.15%. In alignment
with the Company’s ESG goals and focus on emissions reduction, the
Term Loan contains sustainability-linked pricing terms pursuant to
which the Company will receive pricing adjustments based on its
performance against a sustainability performance target focused on
the portion of the Company’s annualized based rent attributable to
tenants with commitments or quantifiable targets for reducing GHG
emissions in accordance with the standards of the Science Based
Targets initiative (“SBTi”).
As previously announced, on June 15, 2023, the Company closed
the amendment and restatement of its existing $175.0 million senior
unsecured term loan, extending the maturity to January 2026 from
December 2024 with an option, at the Company's election, to extend
the maturity to January 2027. The Company has hedged the entire
$175.0 million term loan through January 2027 using a combination
of forward starting swaps that result in an all-in fixed rate of
1.37% through November 27, 2023, which then adjusts to 3.12%
through December 23, 2024, and 3.65% thereafter through the fully
extended maturity of January 2027. The all-in fixed rates consist
of the underlying fixed rate SOFR swaps, plus a credit spread
adjustment of 0.10% and, at current leverage levels, a borrowing
spread of 1.15%.
“We are pleased with the closing of our new $250 million term
loan and the extension of our existing $175 million term loan.
These transactions allowed us to substantially extend our weighted
average debt maturity profile, realign the future interest rate
structure of our term loans, and significantly enhance our
liquidity position,” said Dan Donlan, Chief Financial Officer of
NETSTREIT.
Truist Securities and PNC Capital Markets LLC acted as Joint
Bookrunners and Joint Lead Arrangers for the Term Loan. Capital
One, National Association, Mizuho Bank, Ltd. and The Bank of Nova
Scotia served as Joint Lead Arrangers and Co-Documentation Agents.
Bank of America, N.A. and Stifel Bank & Trust also participated
in the Term Loan. PNC Capital Markets LLC acted as Sustainability
Structuring Agent.
About NETSTREIT Corp.
NETSTREIT is an internally managed real estate investment trust
(REIT) based in Dallas, Texas that specializes in acquiring
single-tenant net lease retail properties nationwide. The growing
portfolio consists of high-quality properties leased to e-commerce
resistant tenants with healthy balance sheets. Led by a management
team of seasoned commercial real estate executives, NETSTREIT’s
strategy is to create the highest quality net lease retail
portfolio in the country with the goal of generating consistent
cash flows and dividends for its investors.
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