Today, Essential Properties Realty Trust, Inc. (NYSE: EPRT) (the “Company” or “EPRT”) announced the closing of an amendment of the Company’s Amended and Restated Credit Agreement, which added a new unsecured $450 million 5.5-year term loan facility (the “2029 Term Loan”). The 2029 Term Loan, if the extension options are fully exercised by the Company, will mature in February 2029. At closing, the Company drew an initial funding amount of $250 million, a portion of which was used to pay-off the Company’s $200 million term loan that was due to mature in April 2024.
The 2029 Term Loan has a 6-month delayed funding feature, allowing the Company to borrow the remaining $200 million through February of 2024. Among other things, after giving effect to the 2029 Term Loan, the Credit Facility continues to provide for a Revolving Credit Facility of up to $600.0 million, a $400.0 million second tranche term loan (the “2028 Term Loan") and an accordion feature which provides an additional $600 million of capacity on the Credit Facility. The Revolving Credit Facility, the 2028 Term Loan, and the 2029 Term Loan initially bear interest at an annual rate of term SOFR plus an applicable margin. The Company expects to enter into swap agreements for the un-swapped $50 million of the initial funding, that fixes the base rate and yields an all-in rate ranging from approximately 5% to 5.25% over the term of the 2029 Term Loan.
BOFA Securities, Inc., was the Sole Bookrunner, and Wells Fargo Bank, N.A. served as Administrative Agent. Bank of Montreal, Capital One, N.A., Mizuho Bank LTD., and TD Bank, N.A. served as Joint Lead Arrangers. Truist Securities, Inc. and Wells Fargo Securities LLC, served as Documentation Agents.
Mark Patten, the Company’s Executive Vice President and Chief Financial Officer, said, “We are pleased to complete the previously announced 2029 term loan, which addresses our only near-term debt maturity and provides debt capacity for us to continue to execute on our external growth goals.” Mr. Patten concluded by noting, “We greatly appreciate the continued commitment of our lender group and their support of and confidence in our Company.”
About Essential Properties Realty Trust, Inc.
Essential Properties Realty Trust, Inc. is an internally managed REIT that acquires, owns and manages primarily single-tenant properties that are net leased on a long-term basis to companies operating service-oriented or experience-based businesses. As of June 30, 2023, the Company’s portfolio consisted of 1,742 freestanding net lease properties with a weighted average lease term of 14.0 years and a weighted average rent coverage ratio of 4.1x. In addition, as of June 30, 2023, the Company’s portfolio was 99.9% leased to 360 tenants operating 560 different concepts in 16 industries across 48 states.
Essential Properties Realty Trust, Inc.
Mark E. Patten, Executive Vice President and Chief Financial Officer