NNN REIT Boosts Term Loan to $500M, Fixes SOFR at 3.43%
NNN•NNN REIT increased its senior unsecured term loan facility by $200 million to $500 million, maturing on February 15, 2029 with two one-year extension options. It also entered a $100 million forward-starting SOFR swap at 3.43% and lowered term loan margin to 0.800% and revolver margin to 0.725%.
1. Incremental Term Loan Exercise
NNN REIT exercised its option to borrow an additional $200 million under its senior unsecured term loan facility, bringing the total capacity to $500 million. The facility matures on February 15, 2029 and includes two one-year extension options, with proceeds earmarked for general corporate purposes.
2. SOFR Swap Hedge
To fix its interest exposure, the company entered into a $100 million forward-starting swap, locking in SOFR at 3.43% through the February 15, 2029 maturity date. This hedge aligns with the incremental term loan’s schedule and mitigates rate volatility risk.
3. Pricing Grid Amendments
NNN REIT amended pricing grids on both the term loan and its revolving credit facility, reducing the SOFR-based margin on the term loan from 0.850% to 0.800% and on the revolver from 0.775% to 0.725%. These adjustments lower the company’s cost of capital in line with its credit ratings.
