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.