NETSTREIT Corp. Announces $250.0 Million Term Loan and Amended and Extended $175.0 Million Term Loan

NETSTREIT Corp. (the “Company”) today announced the closing of a three-year $250.0 million sustainability-linked senior unsecured term loan facility with a 12-month delayed draw feature (the “Term Loan”). The Term Loan initially matures in July 2026 and includes, at the Company's election, two one-year options and one six-month option to extend the maturity of the Term Loan to January 2029 (5.5-year term). The Term Loan includes an accordion feature that allows the Company to request up to $400.0 million of total lender commitments. At close on July 3, 2023, the initial amount drawn on the Term Loan was $150.0 million, and the Company has hedged the entire $250.0 million Term Loan at an all-in fixed interest rate of 4.99% through January 2029, which consists of a fixed rate SOFR swap of 3.74%, plus a credit spread adjustment of 0.10% and, at current leverage levels, a borrowing spread of 1.15%. In alignment with the Company’s ESG goals and focus on emissions reduction, the Term Loan contains sustainability-linked pricing terms pursuant to which the Company will receive pricing adjustments based on its performance against a sustainability performance target focused on the portion of the Company’s annualized based rent attributable to tenants with commitments or quantifiable targets for reducing GHG emissions in accordance with the standards of the Science Based Targets initiative (“SBTi”).

As previously announced, on June 15, 2023, the Company closed the amendment and restatement of its existing $175.0 million senior unsecured term loan, extending the maturity to January 2026 from December 2024 with an option, at the Company's election, to extend the maturity to January 2027. The Company has hedged the entire $175.0 million term loan through January 2027 using a combination of forward starting swaps that result in an all-in fixed rate of 1.37% through November 27, 2023, which then adjusts to 3.12% through December 23, 2024, and 3.65% thereafter through the fully extended maturity of January 2027. The all-in fixed rates consist of the underlying fixed rate SOFR swaps, plus a credit spread adjustment of 0.10% and, at current leverage levels, a borrowing spread of 1.15%.

“We are pleased with the closing of our new $250 million term loan and the extension of our existing $175 million term loan. These transactions allowed us to substantially extend our weighted average debt maturity profile, realign the future interest rate structure of our term loans, and significantly enhance our liquidity position,” said Dan Donlan, Chief Financial Officer of NETSTREIT.

Truist Securities and PNC Capital Markets LLC acted as Joint Bookrunners and Joint Lead Arrangers for the Term Loan. Capital One, National Association, Mizuho Bank, Ltd. and The Bank of Nova Scotia served as Joint Lead Arrangers and Co-Documentation Agents. Bank of America, N.A. and Stifel Bank & Trust also participated in the Term Loan. PNC Capital Markets LLC acted as Sustainability Structuring Agent.

About NETSTREIT Corp.

NETSTREIT is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230706386326/en/