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BMO Harris Administers $815MM Credit Facility Recast for American Finance Trust

October 04, 2021, 07:45 AM
Filed Under: Industry News
Related: BMO Harris Bank

American Finance Trust amended and restated its existing $540 million unsecured revolving credit facility and increased the size to $815 million (the "Credit Facility"). The Credit Facility matures in 4.5 years, has two 6-month extension options, and has a margin that is 15 basis points lower than the prior facility. The Credit Facility may be increased by $435 million pursuant to an "accordion" feature for a total of $1.25 billion, subject to obtaining additional lender commitments.

"Thanks to the high-quality underlying assets in AFIN's portfolio, we were able to expand our credit facility on what we believe to be very attractive terms," said Michael Weil, CEO of AFIN. "We proactively replaced the prior facility early to take full advantage of an active corporate syndication market and provide increased benefits to AFIN with respect to terms and pricing. As a continuing part of our de-leveraging strategy, we believe this transaction further strengthens our balance sheet and provides additional flexibility for executing our acquisition and disposition strategies."

The Credit Facility will be administered by BMO Harris Bank and includes two six-month extension options. The interest rate on the Credit Facility adjusts based on the leverage ratio, with a minimum rate of 1.45% over LIBOR and a maximum of 2.05% over LIBOR. Upon AFIN or its operating partnership achieving an investment grade rating from any two of the three major rating agencies (Standard & Poor's, Moody's, and/or Fitch), AFIN may make a onetime irrevocable election to switch to credit rating based pricing, which decreases the applicable interest rate margins.

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