AR Global’s American Finance Trust Obtains $415 Million Unsecured Credit Facility
American Finance Trust Inc., a publicly registered non-traded real estate investment trust, has entered into a new $415 million revolving unsecured corporate credit facility.
American Finance Trust Inc., a publicly registered non-traded real estate investment trust, has entered into a new $415 million revolving unsecured corporate credit facility with BMO Harris Bank N.A, as administrative agent, together with Citizens Bank and SunTrust Robinson Humphrey Inc. as syndication agents, joint lead arrangers and joint book runners, and other lenders as participants.
The $415 million credit facility replaces the company’s previous $325 million facility which was set to mature in May 2018 and may be expanded under an “accordion” feature to $915 million, with additional lender commitments. Borrowings will be used to finance portfolio acquisitions and for general corporate purposes, including single-tenant net lease and multi-tenant retail assets.
The credit facility matures on April 26, 2020. The maturity date will be automatically extended by two years if company shares become publicly traded on a national securities exchange.
Borrowings will bear interest at LIBOR plus an applicable margin ranging from 1.60 percent to 2.20 percent, depending on the company’s consolidated leverage ratio.
In other company news, the American Finance Trust board recently approved a $23.56 per share net asset value for the company’s common stock as of December 31, 2017. Shares were originally sold for $25.00 each.
American Finance Trust commenced its initial public offering in April 2013, which closed six months later after raising $1.6 billion in investor equity. In February 2017, the company completed its merger with affiliated non-traded REIT, American Realty Capital – Retail Centers of America, and currently owns a portfolio of 540 properties with a total purchase price of $3.5 billion.
