Essential Properties Realty Trust, Inc. Announces New $450 Million 5.5 Year Unsecured Term Loan
25 August 2023 - 6:20AM
Business Wire
Today, Essential Properties Realty Trust, Inc. (NYSE: EPRT) (the
“Company” or “EPRT”) announced the closing of an amendment of the
Company’s Amended and Restated Credit Agreement, which added a new
unsecured $450 million 5.5-year term loan facility (the “2029 Term
Loan”). The 2029 Term Loan, if the extension options are fully
exercised by the Company, will mature in February 2029. At closing,
the Company drew an initial funding amount of $250 million, a
portion of which was used to pay-off the Company’s $200 million
term loan that was due to mature in April 2024.
The 2029 Term Loan has a 6-month delayed funding feature,
allowing the Company to borrow the remaining $200 million through
February of 2024. Among other things, after giving effect to the
2029 Term Loan, the Credit Facility continues to provide for a
Revolving Credit Facility of up to $600.0 million, a $400.0 million
second tranche term loan (the “2028 Term Loan") and an accordion
feature which provides an additional $600 million of capacity on
the Credit Facility. The Revolving Credit Facility, the 2028 Term
Loan, and the 2029 Term Loan initially bear interest at an annual
rate of term SOFR plus an applicable margin. The Company expects to
enter into swap agreements for the un-swapped $50 million of the
initial funding, that fixes the base rate and yields an all-in rate
ranging from approximately 5% to 5.25% over the term of the 2029
Term Loan.
BOFA Securities, Inc., was the Sole Bookrunner, and Wells Fargo
Bank, N.A. served as Administrative Agent. Bank of Montreal,
Capital One, N.A., Mizuho Bank LTD., and TD Bank, N.A. served as
Joint Lead Arrangers. Truist Securities, Inc. and Wells Fargo
Securities LLC, served as Documentation Agents.
Mark Patten, the Company’s Executive Vice President and Chief
Financial Officer, said, “We are pleased to complete the previously
announced 2029 term loan, which addresses our only near-term debt
maturity and provides debt capacity for us to continue to execute
on our external growth goals.” Mr. Patten concluded by noting, “We
greatly appreciate the continued commitment of our lender group and
their support of and confidence in our Company.”
About Essential Properties Realty Trust, Inc.
Essential Properties Realty Trust, Inc. is an internally managed
REIT that acquires, owns and manages primarily single-tenant
properties that are net leased on a long-term basis to companies
operating service-oriented or experience-based businesses. As of
June 30, 2023, the Company’s portfolio consisted of 1,742
freestanding net lease properties with a weighted average lease
term of 14.0 years and a weighted average rent coverage ratio of
4.1x. In addition, as of June 30, 2023, the Company’s portfolio was
99.9% leased to 360 tenants operating 560 different concepts in 16
industries across 48 states.
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version on businesswire.com: https://www.businesswire.com/news/home/20230824161449/en/
Investor/Media: Essential Properties Realty Trust, Inc.
Mark E. Patten, Executive Vice President and Chief Financial
Officer 609-436-0619 info@essentialproperties.com
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