Orion Properties announced that it has entered into a new $215 million senior secured revolving credit facility and extended its existing $355 million commercial mortgage-backed securities loan, moves designed to meaningfully extend the company’s debt maturity profile and preserve liquidity.
The new revolving credit facility replaces Orion’s prior $350 million revolver that was scheduled to mature on May 12, 2026. The updated facility reduces the interest rate margin on borrowings by 50 basis points to SOFR plus 2.75% and eliminates the 10-basis-point SOFR adjustment. As of February 19, 2026, Orion had $113 million outstanding under the new facility.
The revolver, secured by a pool of 28 properties, is set to mature on February 18, 2029, inclusive of two six-month extension options. The company entered into the agreement with four banks from its existing lender group.
In addition, Orion amended its $355 million CMBS loan, which is secured by 19 properties and was previously due in February 2027. The amendment extends the maturity date by three and a half years to August 2030, inclusive of two additional extension options totaling 18 months.
The CMBS loan will continue to carry a fixed interest rate of 4.971%. Under the amended terms, excess cash flows after payment of interest and property operating expenses will be swept by the lender and applied toward a combination of principal prepayment and funding reserves, primarily for capital expenditures.
Following the completion of both transactions, Orion reported total liquidity of approximately $119.9 million, including cash and availability under the new revolving credit facility.
Based in Phoenix, Arizona, Orion is an internally managed real estate investment trust focused on owning, acquiring and managing a diversified portfolio of office properties in high-quality suburban markets across the United States. Its properties are primarily leased on a single-tenant net lease basis to creditworthy tenants and include traditional office, governmental, medical office, flex and laboratory, research and development, and flex industrial assets. The company was founded on July 1, 2021, spun off from Realty Income in November 2021, and began trading on the New York Stock Exchange on November 15, 2021.
Support: Wells Fargo Bank, National Association will continue to serve as administrative agent for the revolving credit facility. The lender group includes Wells Fargo Bank, N.A., JP Morgan Chase Bank, TD Bank, N.A., and MidFirst Bank.
KEY QUOTE:
“Proactively addressing our near-term maturities has been a key priority and we appreciate our lenders confidence in our business strategy. The successful execution of our new revolving credit facility and the extension of the CMBS loan materially enhances our capital structure and eliminates near-term maturity risk for Orion. The new lower interest rate spread on our revolver and the extension of the CMBS loan at a sub 5% fixed rate along with accompanying principal amortization will serve to reduce our previously expected interest rate expense in coming periods. With these debt maturities extended and our access to credit preserved and aligned with our business plan, we are well positioned to continue executing on our strategy and driving a more stable and growing earnings profile.”
Paul McDowell, Chief Executive Officer And President, Orion Properties Inc.
