NETSTREIT has closed $550 million in additional financing commitments and amended existing credit facilities agented by PNC Bank, Wells Fargo and Truist Bank.
The additional financing is being provided through an amendment to NETSTREIT’s term loan agreement agented by PNC Bank.
The commitments include a $100 million increase to the REIT’s existing senior unsecured 5.5-year term loan facility. The full amount was funded at closing.
NETSTREIT also received a $50 million increase to its existing senior unsecured seven-year term loan facility, which was also fully funded at closing.
The largest component is a new $400 million senior unsecured seven-year delayed-draw term loan facility. The facility was undrawn at closing and can be drawn through September 28, 2027.
NETSTREIT used proceeds from the two incremental term loans, together with a remaining $50 million draw under its existing 2032 term loan, to repay its $200 million term loan that had been scheduled to mature in February 2028.
Interest rate swaps previously associated with the repaid term loan remain in place and continue fixing the interest rate on an equivalent amount of borrowings through February 2028.
The company also amended its PNC term loan agreement and credit agreements agented by PNC, Wells Fargo and Truist. Some of the amendments reduce applicable margin spreads.
NETSTREIT said the transactions extend its weighted-average debt maturity profile and leave the company with no material debt maturities until early 2029.
The financing also addresses a significant portion of NETSTREIT’s anticipated debt capital requirements through 2027 and increases available liquidity.
PNC Capital Markets, Huntington National Bank, Truist Securities, Capital One and Regions Capital Markets served as joint lead arrangers for the $100 million incremental term loan.
Those firms were joined by TD Bank and U.S. Bank as joint lead arrangers for the $50 million incremental facility.
The $400 million delayed-draw facility includes PNC Capital Markets, Huntington, Capital One, Regions, TD Bank, Manufacturers and Traders Trust Company, Truist Securities and U.S. Bank as joint lead arrangers.
PNC Capital Markets served as sole bookrunner for the 2031 and 2032 incremental term loans and as one of the joint bookrunners for the 2033 delayed-draw facility.
Morrison & Foerster represented NETSTREIT, while Alston & Bird represented the administrative agents.
KEY QUOTES:
“We are pleased with the closing of our $550.0 million in additional term loan commitments and the full repayment of our 2028 term loan. With these transactions, we have meaningfully extended our weighted average debt maturity profile and have no material debt maturing until early 2029. This additional financing also largely addresses our debt capital needs through 2027 and greatly enhances our liquidity position heading into next year. We sincerely appreciate the continued commitment and support of our trusted banking partners,”
Dan Donlan, Chief Financial Officer of NETSTREIT
