The new capital injection mirrors the terms of the company's existing $300 million facility, which is set to mature in February 2029. To mitigate interest rate volatility, NNN REIT initiated a $100 million forward-starting swap, fixing the SOFR at 3.43% for the duration of the loan term. CFO Vincent H. Chao noted that the move is designed to bolster financial flexibility and reduce the firm’s overall cost of capital.
In section Releases
NNN REIT Expands Credit Facility and Trims Borrowing Costs
Orlando-based NNN REIT has secured a $200 million incremental term loan, pushing the total capacity of its senior unsecured facility to $500 million. The company plans to deploy these funds for general corporate needs while simultaneously locking in interest rate hedges to manage long-term debt exposure through 2029.
Beyond the new borrowing, NNN REIT successfully negotiated lower pricing on both its term loan and revolving credit facility. Reflecting the company's current credit standing, the SOFR-based margin for the term loan was reduced to 0.800% from 0.850%, while the revolving credit facility margin dropped to 0.725% from 0.775%. Wells Fargo Securities and BofA Securities acted as the joint lead arrangers for the transaction, supported by a syndicate of financial institutions including Truist, PNC, and U.S. Bank.
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