American Finance Trust, Inc. [NASDAQ: AFIN] disclosed that it has successfully executed the earlier declared $500 million senior unsecured note offering due 2028. The Notes will have an effective interest rate of 4.50% and have a maturity date of September 30, 2028. The firm has witnessed huge demand for inaugural senior unsecured note offering, which was upsized from $400 million to $500 million and was oversubscribed by institutional investors.
The Notes, integrated with the recently declared recast and upsize of AFIN’s $815 million unsecured revolving credit facility including a new 4.5-year term and excellent pricing that is 15 basis points lower than the prior facility, continue to underscore the devotion of AFIN to create an investment-grade balance sheet.
Furthermore, the Notes offering indicates an important achievement for AFIN as it expands its capital structure and emphasis expanding the Company’s unsecured debt pool. AFIN disclosed these Notes enabled the firm to repay about $186 million that was borrowed under its senior unsecured revolving credit facility and $125 million of certain mortgage notes, to finance future property purchases and for other general business purposes.
In addition, AFIN revealed that Standard & Poor’s Rating Services (S&P) and Fitch Ratings (Fitch) announced a rating of BB+ on the Notes. Moreover, AFIN stated that it is putting a stable basis for AFIN’s continued growth in the coming years through its issuance of unsecured notes on attractive terms and by establishing flexibility into its balance sheet through the recast credit facility.