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NETSTREIT Corp. Announces $600 Million Sustainability-Linked Credit Facility

·5 min read

DALLAS, August 11, 2022--(BUSINESS WIRE)--NETSTREIT Corp. (NYSE: NTST) ("NTST" or the "Company"), announced today the closing of an inaugural $600 million sustainability-linked senior unsecured credit facility (the "Credit Facility"), consisting of a $400 million senior unsecured revolving credit facility (the "Revolver") and a new $200 million senior unsecured term loan (the "Term Loan"), with an additional $400 million accordion feature. The Revolver refinanced and upsized NTST’s existing $250 million senior unsecured revolving credit facility, which was set to mature in December 2023. The Revolver will mature in August 2026 (4 year term), with the option available to extend the maturity for an additional year, while the Term Loan will mature in February 2028 (5.5 year term). The Term Loan will be fully drawn at close and hedged through its term with an all-in rate of 3.88%. The Company’s existing $175 million senior unsecured term loan that is fully hedged at an all-in rate of 1.36% will remain outstanding through maturity in December 2024.

In addition to enhancing the borrowing capacity of the Company and extending the term on the Revolver, the Credit Facility also made structural changes to certain financial covenants, reduced the capitalization rate from 7.25% to 6.50%, and transitioned the company from LIBOR to SOFR borrowings. In alignment with the Company’s ESG goals and focus on emissions reduction, the Credit Agreement contains sustainability-linked pricing terms pursuant to which the Company will receive pricing adjustments based on its performance against a sustainability performance target focused on the portion of the Company’s annualized based rent attributable to tenants with commitments or quantifiable targets for reducing GHG emissions in accordance with the standards of the Science Based Targets initiative ("SBTi").

"We are pleased with the closing of our Credit Facility, featuring the most innovative ESG-focused financing approach that any retail net lease company has undertaken. The Credit Facility is our largest financing to date, which along with the equity raise executed last week, provides significant liquidity to facilitate our ability to expand our growing portfolio of high-quality assets," said Andrew Blocher, Chief Financial Officer of NETSTREIT.

PNC Capital Markets LLC, U.S. Bank, National Association, and Wells Fargo Securities, LLC acted as Joint Bookrunners and Joint Lead Arrangers for the Credit Facility. PNC Bank, National Association serves as Administrative Agent and Wells Fargo, National Association and US Bank, National Association serve as Co-Syndication Agents. Capital One, National Association, The Huntington National Bank, Regions Bank, TD Bank, N.A., The Bank of Nova Scotia, and Truist Bank serve as Co-Documentation Agents. Citizens Bank, National Association, Comerica Bank, and Associated Bank, National Association also participated in the Credit Facility. PNC Capital Markets LLC acted as advisor and sole Sustainability Structuring Agent.

About NETSTREIT Corporation

NETSTREIT is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements concerning our business and growth strategies, investment, financing and leasing activities and trends in our business, including trends in the market for single-tenant, retail commercial real estate. Words such as "expects," "anticipates," "intends," "plans," "likely," "will," "believes," "seeks," "estimates," and variations of such words and similar expressions are intended to identify such forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from the results of operations or plans expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such statements included in this press release may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved. For a further discussion of these and other factors that could impact future results, performance or transactions, see the information under the heading "Risk Factors" in our Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission (the "SEC") on February 24, 2022 and other reports filed with the SEC from time to time. Forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release. New risks and uncertainties may arise over time and it is not possible for us to predict those events or how they may affect us. Many of the risks identified herein and in our periodic reports have been and will continue to be heightened as a result of the ongoing and numerous adverse effects arising from the novel coronavirus (COVID-19) and instability in macroeconomic conditions. We expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in our expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220811005709/en/

Contacts

Investor Relations
ir@netstreit.com
972-597-4825