Search

American Finance Completes $715 Million USD Private Placement CMBS


American Finance Trust, Inc. (Nasdaq: AFIN) has completed a Commercial Mortgage Backed Securities (CMBS) Private Placement financing transaction for $715 Million USD.

The CMBS Loan locked in at this year’s historically low interest rates, and is for five years, and extends AFIN's weighted average debt maturity from 3.5 years to 5.1 years, enhancing value for the Company. Despite the challenges of the COVID-19 pandemic, the AFIN team was able to work with the underwriters to ensure superior execution and pricing on this financing which converted almost 28% of the Company’s total outstanding debt from a 2-month maturity into a new, five-year financing. The Company believe this transaction de-risked its portfolio, while giving the Company flexibility in the future to broaden its capital structure.

The CMBS Loan is interest-only at an interest rate of 3.74%, has a five-year term and is secured by 368 single-tenant properties. Of these, 223 properties were previously collateral for a loan that had less than two months of term remaining and an effective interest rate of 4.36%. All but one of the remaining properties were part of the borrowing base for AFIN's corporate credit facility. At the closing of the CMBS Loan, an aggregate of approximately $499.0 million of proceeds was used to repay the existing mortgage loan in full and the balance was used to repay amounts outstanding under the Company's corporate credit facility.

About American Finance Trust, Inc.

American Finance Trust, Inc. (Nasdaq: AFIN) is a publicly traded real estate investment trust listed on the 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.

0 views

Steve Muehler's - Private Placement Markets are a Delaware Limited Liability Company. The Private Placement Markets provide no depository services and is not insured by the FDIC. Private Placement Markets, LLC is a Debt & Equity Investments Underwriter, Private Debt Loan Servicing Agent, Capital Markets Listing Underwriter & Advisor and Investor Relations Firm. Steve Muehler and Private Placement Markets, LLC do not offer, and do not offer to provide any broker dealer or market maker services. Members of the Private Placement Markets, LLC operate this website (referred to as the “Website”). By accessing this Website and any pages thereof, you agree to be bound by its Terms of Use and Privacy Policy. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. Steve Muehler and Private Placement Markets, LLC do not provide financial planning services. Steve Muehler and Private Placement Markets, LLC do not provide tax advice and do not represent in any manner that the outcomes described herein will result in any particular tax consequence. Participants of the Private Placement Markets should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this Website, and are encouraged to consult with their own financial advisor, attorney, accountant, and any other professional that can help you / them to understand and assess the risks associated with any Private Placement Debt Lending  or Equity Investment Opportunity.

© 2020 Steve Muehler