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Broadstone Net Lease closes $800m credit facility

by Released

Broadstone Net Lease, a diversified triple-net commercial REIT, together with Broadstone Net Lease, as borrower, has secured an $800 million unsecured credit facility with a syndicate of leading real estate lenders.

The credit facility contains an accordion feature that can increase the facility size up to a total of $1.0 billion, and includes a $400 million senior unsecured revolving credit facility (the Revolver), a five-and-a-half-year, $250 million senior unsecured delayed draw term loan (the 5.5-Year Term Loan), and a seven-year, $150 million senior unsecured delayed draw term loan (the 7-Year Term Loan).

“The new credit facility embodies our continued growth, the strengthening of our balance sheet, and reflects the capital market’s acknowledgment of our proven investment-performance track record,” said Ryan Albano, executive vice president and chief financial officer of Broadstone Net Lease. “This new facility enables us to execute on our strategy with a capitalization that’s commensurate with our investment-grade credit rating.”

Proceeds will be used to repay borrowings under Broadstone Net Lease’s existing $400 million unsecured revolving credit and term loan agreement, and Broadstone Net Lease’s $185 million term loan that was scheduled to mature on Oct. 11, 2018, as well as to fund future acquisitions and general corporate purposes.

In connection with the new credit facility, Broadstone Net Lease also amended and restated the Broadstone Net Lease’s $375 million term loan agreement to align its terms with the new facility, and to reduce the borrowings to $325 million through a one-time non-pro rata payment provision. The new $800 million credit facility and the amended and restated $325 million term loan agreement provide BNL with a combined $1.125 billion in committed capital from its lenders.

Interest rates under the new credit facility are equal to LIBOR plus a margin. The margin is adjustable based upon the Broadstone Net Lease’s credit rating, as summarized below:

 

Loan Tranche

Maturity Date

LIBOR Margin

Revolver January 21, 2022 0.825% - 1.55%
5.5-Year Term Loan January 23, 2023 0.9% - 1.75%
7-Year Term Loan June 21, 2024 1.5% - 2.45%

 

Based on Broadstone Net Lease’s current investment-grade credit rating of Baa3, the applicable margin for LIBOR borrowings under the Revolver, 5.5-Year Term Loan, and 7-year Term Loan equals 1.2 percent, 1.35 percent, and 1.9 percent, respectively.

 

 

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