American Finance Trust, Inc. Announces Pricing of $500 Million of Senior Notes

Rhea-AI Summary

American Finance Trust, Inc. (AFIN) announced the pricing of $500 million aggregate principal amount of new 4.50% Senior Notes due 2028. The issuance is expected to close around October 7, 2021. Proceeds will be used to repay approximately $186.2 million borrowed under the Credit Facility, $125 million of certain mortgage notes, and for future property acquisitions and other general corporate purposes. The Notes were offered under Rule 144A and Regulation S of the Securities Act, and have not been registered.

Positive

• Pricing of $500 million in new Senior Notes may enhance liquidity and financial flexibility.
• Proceeds will pay down $186.2 million of Credit Facility, improving balance sheet health.

Negative

• Issuance of Senior Notes may increase long-term debt obligations, impacting future interest expenses.

NEW YORK, Sept. 30, 2021 /PRNewswire/ -- American Finance Trust, Inc. ("AFIN" or the "Company") (Nasdaq: AFIN) today announced that the Company and American Finance Operating Partnership, L.P. , the Company's operating partnership subsidiary (the "Operating Partnership" and, together with the Company, the "Issuers"), priced $500 million aggregate principal amount of new 4.50% Senior Notes due 2028 (the "Notes"). The Notes will be guaranteed on a senior unsecured basis by each of the Company's subsidiaries that are guarantors under the Operating Partnership's senior unsecured revolving credit facility (the "Credit Facility").

The issuance of the Notes is expected to close on or about October 7, 2021, subject to customary closing conditions. The Issuers intend to use proceeds from the offering to repay amounts borrowed under the Credit Facility of approximately $186.2 million, repay $125 million of certain mortgage notes, to fund future property acquisitions and for other general corporate purposes.

The Notes and related guarantees were offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States pursuant to Regulation S under the Securities Act. The Notes and related guarantees have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, any securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of any securities, in any jurisdiction in which such offer, solicitation or sale is unlawful.

About American Finance Trust, Inc.

AFIN (Nasdaq:  "AFIN") is an externally managed REIT focusing on acquiring and managing a diversified portfolio of primarily service-oriented and traditional retail and distribution-related commercial real estate properties located primarily in the United States. 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. We caution you that any forward-looking statements included in this press release are based on the Company's current views and information currently available to us. 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 are described in more detail 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, the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021 and all other filings with the Securities and Exchange Commission 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.

Contacts:

Investors and Media:

Email: investorrelations@americanfinancetrust.com
Phone: (866) 902-0063

 

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SOURCE American Finance Trust, Inc.

FAQ

What is the amount of Senior Notes issued by AFIN?

American Finance Trust, Inc. issued $500 million aggregate principal amount of Senior Notes.

What is the interest rate of the new Senior Notes due 2028 from AFIN?

The new Senior Notes due 2028 have an interest rate of 4.50%.

When is the expected closing date for AFIN's Senior Notes issuance?

The closing date for the issuance of the Senior Notes is expected to be around October 7, 2021.

How will AFIN utilize the proceeds from the Senior Notes offering?

The proceeds will be used to repay $186.2 million under the Credit Facility, $125 million of mortgage notes, fund future property acquisitions, and for general corporate purposes.

Under which regulations were AFIN's Senior Notes offered?

The Senior Notes were offered under Rule 144A and Regulation S of the Securities Act.