- Achieved Current All-In Interest Rate of 3.263% on Senior Unsecured
Term Loan -
- Increased Weighted Average Debt Duration by
0.9 years to 4.68 Years -
- Reduced Weighted Average
Interest Rate by 46 Basis Points to 3.89% -
- Lowered
Percentage of Secured Debt by 39% -
PRINCETON, N.J.--(BUSINESS WIRE)--
Essential Properties Realty Trust, Inc. (NYSE:EPRT; “Essential
Properties” or the “Company”), announced today that the Company has
fully funded its previously announced $200 million five-year senior
unsecured term loan, effective May 14, 2019. In a subsequent
transaction, the Company repurchased $200 million of its Class A Series
2016-1 ABS Notes from an affiliate of Eldridge Industries for a 70 basis
point premium to face value, or an all-in cost of approximately $201.4
million. The Company also announced that it entered into a $200 million
swap transaction on May 15, 2019 that fixed LIBOR (London Interbank
Offered Rate) for five years at a rate of 2.063%. Accordingly, based on
the Company’s current leverage ratio, the all-in interest rate is 3.263%
on the term loan, which represents interest rate savings of 119 basis
points on the repurchased ABS Notes.
As a result of these transactions, the Company increased its weighted
average debt maturity to 4.68 years from 3.75 years, lowered its
weighted average interest rate to 3.89% from 4.35%, and reduced its
percentage of secured debt to 61% from 100%.
“We were pleased to negotiate an attractive repurchase of our secured
ABS notes from an affiliate of Eldridge Industries in addition to
capitalizing on the favorable interest rate environment and compelling
economics of our previously announced unsecured bank term loan,” said
Hillary Hai, Chief Financial Officer of Essential Properties.
About Essential Properties Realty Trust, Inc.
Essential Properties Realty Trust, Inc. is an internally managed real
estate company that acquires, owns and manages primarily single-tenant
properties that are net leased on a long-term basis to companies
operating service-oriented or experience-based businesses. As of March
31, 2019, the Company’s portfolio consisted of 711 freestanding net
lease properties with a weighted average lease term of 14.5 years and a
weighted average rent coverage ratio of 2.8x. As of the same date, the
Company’s portfolio was 99.9% leased to 172 tenants operating 197
different concepts in 16 distinct industries across 44 states.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190517005085/en/
Investor/Media:
Essential Properties Realty Trust, Inc.
Daniel
Donlan
Senior Vice President, Capital Markets
609-436-0619
info@essentialproperties.com
Source: Essential Properties Realty Trust, Inc.