Princeton-based Essential Properties Realty Trust on Friday said it closed on an amendment to the company’s Amended and Restated Credit Agreement, which added a new unsecured $450 million up-to-5.5-year loan.
At closing, the company drew an initial funding amount of $320 million, a portion of which was used to pay off the outstanding balance on the company’s revolving credit facility. The loan has a 6-month delayed funding feature, allowing the company to borrow the remaining $130 million through January 2025. The company entered into swap agreements for the initial funding amount for an effective all-in rate of approximately 4.99%.
“We are very pleased to execute the 2030 Term Loan, which addresses our debt capital needs for the near-term,” Mark Patten, Essential Properties’ executive vice president and chief financial officer, said. “We greatly appreciate that effectively all of our bank group participated in the 2030 Term Loan, indicating their strong ongoing commitment, support and confidence in our company, and we were pleased to welcome our new banking relationships.”
Wells Fargo Securities and Mizuho Americas were the joint bookrunners. Wells Fargo Bank N.A. served as administrative agent and Wells Fargo Securities LLC served as sustainability structuring agent. BOFA Securities Inc., BMO Capital Markets Corp., Capital One N.A., TD Bank N.A. and Truist Securities Inc., served as joint lead arrangers. The Bank of Nova Scotia, BNP Paribas and Regions Bank served as documentation agents.
