NETSTREIT secures $450M in additional financing
NETSTREIT has secured $450 million in additional financing, amending its credit facilities with major banks, including PNC, Wells Fargo, and Truist Bank.
The financing includes a fully funded $200 million term loan maturing in 5.5 years and a partially funded $250 million loan with access to additional funds until September 2026.
The 2031 Term Loan features a comprehensive hedge at an interest rate of 4.59%, while the 2032 Term Loan is partly hedged with a rate of 4.92%, and the remaining portion is unhedged.
Amendments to the existing credit agreements were made to align with the PNC term loan agreement, including the removal of the SOFR credit spread adjustment.
Financing Recommendation Rating: Strong
NETSTREIT (NYSE: NTST) has successfully secured $450 million in additional financing while also amending its credit facilities with PNC Bank (PNC), Wells Fargo (WFC), and Truist Bank (TFC).
The newly established term loan credit agreement, managed by PNC Bank, includes a $200 million loan set to mature in 5.5 years, known as the 2031 Term Loan, which has been fully funded upon closing. Additionally, there is a $250 million 7-year loan, referred to as the 2032 Term Loan, which features partial funding of $100 million, while the remaining $150 million will be accessible until September 25, 2026.
The 2031 Term Loan is secured with a comprehensive hedge, offering an all-inclusive interest rate of 4.59% per annum effective from October 1, 2025. Meanwhile, $200 million of the 2032 Term Loan is also hedged, at an interest rate of 4.92%, with the remaining $50 million still unhedged. Interest payments are structured to occur either monthly or at the close of the interest period on any outstanding amounts.
In addition to the financing, amendments were made to the credit agreements with PNC, Wells Fargo, and Truist to ensure compliance with the PNC term loan agreement, which included the removal of the SOFR credit spread adjustment among other necessary modifications.