FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Wells Fargo Bank Agents $1.25B Sustainability-Linked Revolver for American Homes 4 Rent

April 19, 2021, 07:00 AM
Filed Under: Real Estate

American Homes 4 Rent successfully closed a $1.25 billion, sustainability-linked revolving credit facility, amending its existing $800 million revolving credit facility. The amended revolving credit facility provides for expanded borrowing capacity to continue to support the Company's growth initiatives, reflects a more favorable pricing grid based on current market conditions, and includes a sustainability component based upon third-party performance measures through which overall pricing can further improve if the Company meets certain targets.

A total of 15 lenders participated in the Company's Credit Facility, including Wells Fargo Bank, National Association as Administrative Agent and JPMorgan Chase Bank, N.A. as Syndication Agent. Additional lenders include Bank of America, N.A., PNC Bank, National Association, Raymond James Bank, N.A., Bank of Montreal, Mizuho Bank, LTD., Morgan Stanley Bank, N.A., The Bank of Nova Scotia, U.S. Bank National Association, Citibank, N.A., Regions Bank, City National Bank, Associated Bank, N.A., and BBVA USA as the Sustainability Agent. Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., and BofA Securities, Inc. were the Joint Lead Arrangers and Joint Book Runners, and PNC Capital Markets LLC and Raymond James Bank, N.A. were Joint Lead Arrangers.

"We are pleased to announce the closing of our upsized credit facility which reflects our continued strategic focus on outsized external growth as well as dedication to sustainability and sound ESG principles," stated Chris Lau, American Homes 4 Rent's Chief Financial Officer. "Our flexible balance sheet and access to investment grade capital continue to be a key differentiator for American Homes 4 Rent.  We appreciate the strong support from our bank group and believe the closing of our upsized credit facility reflects their confidence in our future."

The amended revolving credit facility has an initial maturity date of April 15, 2025 and may be extended for up to one year through the exercise of two six-month extension options at the Borrower's option if certain conditions are met. As of April 15, 2021 $80 million was outstanding under the existing revolving credit facility.

The interest rate on the amended revolving credit facility is at either LIBOR plus a margin ranging from 0.725% to 1.45% or a base rate (determined according to the greater of a prime rate, federal funds rate plus 0.5% or daily LIBOR rate plus 1.0%) plus a margin ranging from 0.00% to 0.45%. In each case the actual margin is determined based on the Company's credit ratings in effect from time to time.

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.