American Finance amends and restates increased $815 million revolver

Chicago, Oct. 4 – American Finance Trust, Inc. amended and restated its revolving credit facility on Friday with BMO Harris Bank NA as administrative agent, according to an 8-K filed with the Securities and Exchange Commission.

The company increased commitments under the facility with an extended April 1, 2026 maturity date to $815 million from $540 million, with a $50 million sublimit for letters of credit and a $55 million sublimit for swingline loans.

The real estate investment trust had previously announced that the commitment level would be raised to at least $750 million.

The maturity date can be extended by up to two additional six-month terms.

There is a $435 million accordion feature, subject to the borrower obtaining commitments from new lenders or additional commitments from participating lenders. With the increase in the initial commitments, the accordion feature was downsized from an initially announced $500 million.

The initial interest rate on the facility is Libor plus 190 basis points. The interest rate can range from Libor plus 145 bps to 205 bps, based on the consolidated leverage ratio.

The commitment fee is 15 bps if the unused commitments are less than 50% of the commitments or 25 bps if the unused commitments are more than 50% of the commitments then in effect.

If the company achieves investment-grade status, the interest rate would be based on ratings and range from Libor plus 72.5 bps to 140 bps with the facility fee moving between 12.5 bps to 30 bps.

Borrowings can be prepaid at any time without penalty.

The credit facility will continue to be supported by a pool of eligible unencumbered real estate assets. The pool can rotate, with properties added or removed, so long as there are at least 15 unencumbered properties with a value of at least $300 million.

On Friday, the company had $186.2 million outstanding under the facility.

BMO Capital Markets Corp., Capital One, NA, Citizens Bank, NA, KeyBanc Capital Markets, Inc. and Truist Securities, Inc. are the joint lead arrangers and joint bookrunners.

Capital One, NA, Citizens Capital Markets, Inc., KeyBank NA and Truist Securities, Inc. are the co-syndication agents.

Societe Generale is the sustainability agent.

American Finance is a New York-based real estate investment trust.

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