Global Net Lease, Inc. Announces Pricing of $500 Million of Senior Notes

Rhea-AI Summary

Global Net Lease (GNL) has priced $500 million in new 3.750% Senior Notes due 2027. The offering will close around December 16, 2020, and will help GNL repay approximately $264 million under its Revolving Credit Facility, $88 million of secured loans, and $139 million of its Term Loan. The Notes are offered to qualified institutional buyers under Rule 144A and Regulation S of the Securities Act. GNL operates as a real estate investment trust, focusing on acquiring commercial properties in the U.S. and Europe.

Positive

• Issuance of $500 million in Senior Notes strengthens GNL's financial position.
• Proceeds from the Notes will be used to repay significant amounts of debt, reducing overall interest expenses.

Negative

• The company remains reliant on debt financing, indicating potential vulnerability to interest rate increases.
• Remaining indebtedness post-offering may raise concerns about GNL's long-term financial health.

NEW YORK, Dec. 10, 2020 /PRNewswire/ -- Global Net Lease, Inc. ("GNL" or the "Company") (NYSE: GNL) today announced that the Company and Global Net Lease 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 3.750% Senior Notes due 2027 (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 multi-currency revolving credit facility (the "Revolving Credit Facility") and senior unsecured term loan facility (the "Term Loan" and, together with the Revolving Credit Facility, the "Credit Facility").

The issuance of the Notes is expected to close on or about December 16, 2020, subject to customary closing conditions. The Issuers intend to use proceeds from the offering to repay amounts borrowed under the Revolving Credit Facility of approximately $264 million, repay up to $88 million of secured loans and related costs, and use the remaining proceeds of approximately $139 million to partially repay the Term Loan.

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 Global Net Lease, Inc.

Global Net Lease, Inc. is a publicly traded real estate investment trust listed on the NYSE focused on acquiring a diversified global portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant, mission critical income producing net-leased assets across the United States, Western and Northern Europe. Additional information about the Company can be found on its website at www.globalnetlease.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, 2019 filed on February 28, 2020, the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020 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@globalnetlease.com 
Phone: (212) 415-6510

 

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SOURCE Global Net Lease, Inc.

FAQ

What are the details of Global Net Lease's $500 million Senior Notes issuance?

Global Net Lease priced $500 million in 3.750% Senior Notes due 2027 to close around December 16, 2020.

How will Global Net Lease use the proceeds from the Senior Notes?

The proceeds will repay approximately $264 million under the Revolving Credit Facility, up to $88 million of secured loans, and around $139 million for the Term Loan.

Who are the buyers of the Senior Notes issued by GNL?

The Notes are offered to qualified institutional buyers within the United States and outside under Regulation S.

Are the Senior Notes from GNL registered under the Securities Act?

No, the Notes have not been registered under the Securities Act and cannot be sold in the U.S. without registration.

What is the maturity date of the Senior Notes issued by Global Net Lease?

The Senior Notes issued by Global Net Lease are due in 2027.