NEW YORK, Oct. 4, 2021 /PRNewswire/ -- American
Finance Trust, Inc. (Nasdaq: AFIN) ("AFIN" or the "Company")
announced today that the Company 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, N.
A. 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.
About American Finance Trust, Inc.
American Finance
Trust, Inc. (Nasdaq: AFIN) is a publicly traded real estate
investment trust listed on the Nasdaq focused on acquiring and
managing a diversified portfolio of primarily service-oriented and
traditional retail and distribution related commercial real estate
properties in the U.S. Additional information about AFIN can be
found on its website at www.americanfinancetrust.com.
Important Notice
The statements in this press release
that are not historical facts may be forward-looking statements.
These forward-looking statements involve risks and uncertainties
that could cause actual results or events to be materially
different. The words "anticipates," "believes," "expects,"
"estimates," "projects," "plans," "intends," "may," "will," "would"
and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. These forward-looking statements are
subject to risks, uncertainties and other factors, many of which
are outside of the Company's control, which could cause actual
results to differ materially from the results contemplated by the
forward-looking statements. These risks and uncertainties include
the potential adverse effects of the ongoing global COVID-19
pandemic, including actions taken to contain or treat COVID-19, on
the Company, the Company's tenants and the global economy and
financial markets and that any potential future acquisition is
subject to market conditions and capital availability and may not
be identified or completed on favorable terms, or at all, as well
as those risks and uncertainties set forth in the Risk Factors
section of the Company's Annual Report on Form 10-K for the year
ended December 31, 2020 filed on
February 25, 2021 and all other
filings with the SEC after that date, as such risks, uncertainties
and other important factors may be updated from time to time in the
Company's subsequent reports. Further, forward looking statements
speak only as of the date they are made, and the Company undertakes
no obligation to update or revise any forward-looking statement to
reflect changed assumptions, the occurrence of unanticipated events
or changes to future operating results, unless required to do so by
law.
Contacts:
Investor Relations
investorrelations@americanfinancetrust.com
(866) 902-0063
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SOURCE American Finance Trust, Inc.