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Modiv Inc., an internally managed actual property funding belief (“REIT”) that acquires, owns, and manages a diversified portfolio of single-tenant net-lease actual property properties, introduced that it efficiently exercised the accordion characteristic of its Credit score Facility on October 21, 2022. The Credit score Facility was elevated to $400 million and is now comprised of a $150 million revolving credit score facility (the “Revolver”) and a $250 million time period mortgage (the “Time period Mortgage”) (collectively, the “Credit score Facility”). The Credit score Facility contains an up to date accordion possibility that permits the Firm to request extra Revolver and Time period Mortgage lender commitments as much as a complete of $750 million. The maturities for the Firm’s Revolver and Time period Mortgage stay unchanged with the Revolver’s maturity in January 2026 with choices to increase for a complete of 12 months, and the Time period Mortgage’s maturity in January 2027.
KeyBanc Capital Markets, Truist Securities, and The Huntington Nationwide Financial institution acted as Joint Lead Arrangers for the expanded Credit score Facility. KeyBank acted as Administrative Agent.
The Credit score Facility is priced on a leverage-based grid that fluctuates based mostly on the Firm’s precise leverage ratio on the finish of the prior quarter. Primarily based on the Firm’s leverage ratio of 38% as of the quarter ended June 30, 2022, the rate of interest for the Revolver is SOFR plus 155 foundation factors plus a 10-basis level SOFR index adjustment and the rate of interest on the Revolver was 4.65% on September 29, 2022. Primarily based on the present steadiness sheet, roughly 97% of the Firm’s indebtedness holds a hard and fast rate of interest.
On October 26, 2022, the Firm bought a five-year swap at 3.44% on a further $100,000,000 of its Time period Mortgage that may lead to a hard and fast rate of interest of 5.04% on extra attracts below the expanded Time period Mortgage when the Firm’s leverage ratio is lower than or equal to 40%. As a part of the swap transaction, the Firm offered a one-time choice to terminate the swap on December 31, 2024, which decreased the swap fee. Below the Credit score Facility, the rate of interest will proceed to differ based mostly on the Firm’s leverage ratio.
“We respect and worth the robust help proven by our financial institution group. With the closing of the expanded Credit score Facility, we now have significant liquidity to speed up our funding technique targeted on net-leased industrial manufacturing properties,” mentioned Aaron Halfacre, Chief Govt Officer of Modiv. “Our diligent funding course of and energy in figuring out accretive acquisitions drives our confidence in delivering long-term worth for our shareholders and we’re inspired by the alternatives we’re seeing out there.”
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