FS Credit REIT enters three-year $310 million credit facility

By Mary-Katherine Stinson

Lexington, Ky., Aug. 9 – FS Credit Real Estate Income Trust, Inc. entered a $310 million senior secured revolving credit facility on Aug. 1, according to an 8-K filing with the Securities and Exchange Commission.

The facility has a three-year maturity with two one-year extension options.

Outstanding loans will bear interest at SOFR plus a spread of 225 basis points annually, with two 25 bps step-ups on the thirtieth and sixtieth day each loan is outstanding.

There is an unused commitment fee of 25 bps annually while more than 50% of the facility is undrawn and 35 bps annually while 50% or less is undrawn.

The facility’s financial covenants include that FS maintain a fixed-charge coverage ratio of at least 1.5x, at least $10 million in liquidity, a debt-to-equity ratio no greater than 3.5x and an interest coverage ratio of at least 1.5x in each case on the last day of any fiscal quarter.

Barclays is the administrative agent.

Barclays and City National Bank are the lead arrangers and bookrunners.

City National Bank is the syndication agent.

M&T Bank and Wells Fargo Bank, NA are the co-documentation agents.

Proceeds will be used for operating expenses and general corporate purposes of the company and its subsidiaries.

Philadelphia-based FS Credit invests primarily in senior floating-rate loans secured by commercial real estate properties.

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