Rochester, New York/ PR Newswire/ — Broadstone Real Estate, LLC announced that Broadstone Net Lease, Inc. (BNL) has closed on a new $150 million unsecured credit facility. The syndicated facility closed today, October 11, 2013. Regions Bank, Wells Fargo Bank N.A., Bank of Montreal, and RBS Citizens, N.A. are all participants in the transaction.
The facility is comprised of a $150 million unsecured term note that was fully funded at closing. The facility has an initial 3-year term and can be extended at the Company’s option for up to two, 2-year periods. “This transaction is exciting for BNL because of the flexibility afforded by the facility’s 7-year horizon which matches well with our long term leases” said Broadstone CFO Chris Czarnecki.
The proceeds will be used to pay down Broadstone Net Lease REIT’s revolving line of credit and fund future property acquisitions. In addition, the facility also helps extend BNL’s debt maturities out further in time. Borrowing rates for the facility float at margin over LIBOR and range from LIBOR + 175 bps to LIBOR + 250 bps, subject to the REIT’s overall leverage ratio.
“We are delighted with the attractive financing we have been able to achieve and the support that our bank syndicate has shown” said Czarnecki. “BNL’s acquisition activity, portfolio diversification and performance over the past 18 months, in particular, have helped strengthen the firm’s standing as a principally unsecured borrower. As a result, the pricing for this facility is 25 to 35 basis points lower than the pricing for an unsecured term loan that we completed less than a year ago.”
Regions Bank served as sole Lead Arranger and Administrative Agent for the facility. Wells Fargo Bank N.A. served as Syndication Agent. Bank of Montreal acted as the Documentation Agent for the transaction. Tones Vaisey, PLLC represented Broadstone Net Lease in the transaction.
Broadstone Net Lease is a private Real Estate Investment Trust (REIT) that focuses on acquiring and holding freestanding, single-tenant, net-leased properties throughout the United States. The REIT’s portfolio is comprised of more than 185 fully tenanted commercial properties, with no lease maturities occurring before the year 2020. Today, there are more than 700 accredited investors that are shareholders in the REIT, which is externally managed by Broadstone Real Estate, LLC, a certified Woman Owned Enterprise. BNL remains open for new investment by accredited investors on a monthly basis. For more information, visit Broadstone’s website at www.broadstone.com.