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High-rise commercial buildings

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Alternative Assets  + Real Estate  | 
The Necessity Retail REIT Announces $260M CMBS Financing Ahead of GNL Merger

The Necessity Retail REIT Announces $260M CMBS Financing Ahead of GNL Merger

The Necessity Retail REIT completed a $260 million commercial mortgage-backed security loan encumbered by 29 multi-tenant properties the company owns across the United States.

The loan is interest-only for 10 years at 6.45%.

Proceeds from the loan will be used to pay down the company’s credit facility ahead of the proposed buyout by Global Net Lease, Inc. The deal was announced on May 23. GNL will acquire RTL in an all-stock transaction.

The combined company is expected to own and manage over 1,350 properties and have a value of approximately $9.6 billion.

“The loan increases our weighted-average debt maturity while lowering our cost of capital and replaces variable-rate debt with fixed-rate. Using the proceeds to pay down our credit facility increases capacity on the line while providing balance sheet flexibility ahead of the proposed merger and internalization with GNL,” said Michael Weil, CEO of RTL.

RTL acquires and manages a portfolio of primarily necessity-based retail single tenant and open-air shopping center properties in the US.

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The Necessity Retail REIT

About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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