NEW YORK, Oct. 8, 2021 /PRNewswire/ -- American
Finance Trust, Inc. (Nasdaq: AFIN) ("AFIN" or the "Company")
announced today that on October 7,
2021, the Company successfully completed its previously
announced $500 million senior
unsecured note offering (the "Notes") due 2028. The Notes will have
an effective interest rate of 4.50% and mature on September 30, 2028. Standard & Poor's Rating
Services ("S&P") and Fitch Ratings ("Fitch") issued a rating of
BB+ on the Notes.
"We are extremely pleased with the market's reception and demand
for our inaugural senior unsecured note offering, which was upsized
from $400 million to $500 million and was oversubscribed by
institutional investors," said Michael
Weil, CEO of AFIN. "We believe that the success of the
transaction is an accomplishment that reflects our team's hard work
to enhance AFIN's primarily investment grade portfolio through
strong leasing results and disciplined acquisition focus over the
past several years. The Notes, combined with the recently announced
recast and upsize of our $815 million
unsecured revolving credit facility featuring a new 4.5-year term
and excellent pricing that is 15 basis points lower than the prior
facility, continue to demonstrate our commitment to constructing an
investment-grade balance sheet."
Jason Doyle, Chief Financial
Officer of AFIN, added, "The Notes offering marks an important
milestone for AFIN as we diversify our capital structure and focus
on increasing the Company's unsecured debt pool." Jason continued,
"The Notes allowed us to repay approximately $186 million that was borrowed under our senior
unsecured revolving credit facility and $125
million of certain mortgage notes, to fund future property
acquisitions and for other general corporate purposes. The
seven-year notes and credit facility recast, combined with
previously discussed financing transactions, improve our weighted
average debt maturity to over six years from three years at the end
of the second quarter 2020. We are laying a stable foundation for
AFIN's continued growth in the years to come through our issuance
of unsecured notes on attractive terms and by building flexibility
into our balance sheet through the recast credit facility."
About American Finance Trust, Inc.
American Finance
Trust, Inc. (Nasdaq: AFIN) is a publicly traded real estate
investment trust listed on Nasdaq focused on acquiring and managing
a diversified portfolio of primarily service-oriented and
traditional retail and distribution related commercial real estate
properties in the U.S. Additional information about AFIN can be
found on its website at www.americanfinancetrust.com.
Important Notice
The statements in this press release
that are not historical facts may be forward-looking statements.
These forward-looking statements involve risks and uncertainties
that could cause actual results or events to be materially
different. The words "anticipates," "believes," "expects,"
"estimates," "projects," "plans," "intends," "may," "will," "would"
and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. These forward-looking statements are
subject to risks, uncertainties and other factors, many of which
are outside of the Company's control, which could cause actual
results to differ materially from the results contemplated by the
forward-looking statements. These risks and uncertainties include
the potential adverse effects of the ongoing global COVID-19
pandemic, including actions taken to contain or treat COVID-19, on
the Company, the Company's tenants and the global economy and
financial markets and that any potential future acquisition of
property is subject to market conditions and capital availability
and may not be identified or completed on favorable terms, or at
all, as well as those risks and uncertainties set forth in the Risk
Factors section of the Company's Annual Report on Form 10-K for the
year ended December 31, 2020 filed on
February 25, 2021 and all other
filings with the SEC after that date, as such risks, uncertainties
and other important factors may be updated from time to time in the
Company's subsequent reports. Further, forward looking statements
speak only as of the date they are made, and the Company undertakes
no obligation to update or revise any forward-looking statement to
reflect changed assumptions, the occurrence of unanticipated events
or changes to future operating results, unless required to do so by
law.
A securities rating is not a recommendation to buy, sell or hold
securities and may be subject to revision or withdrawal at any
time. Each rating agency has its own methodology for assigning
ratings and, accordingly, each rating should be evaluated
independently of any other rating.
Contacts:
Investor Relations
investorrelations@americanfinancetrust.com
(866) 902-0063
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SOURCE American Finance Trust, Inc.