Essential Properties Realty Trust, Inc. Announces New $450 Million Unsecured Term Loan to Fuel Growth and Expansion
Princeton, N.J. - In a significant move to support its growth and expansion strategy, Essential Properties Realty Trust, Inc. (NYSE: EPRT) announced the successful closing of an amendment to its Amended and Restated Credit Agreement. This amendment introduced a new unsecured term loan facility of $450 million, with a flexible term of up to 5.5 years and a delayed draw feature. The financing, referred to as the 2030 Term Loan, is expected to provide the company with additional liquidity and financial flexibility.
The 2030 Term Loan is designed to support Essential Properties Realty Trust’s ongoing efforts to expand its real estate portfolio, primarily focusing on investments in single-tenant properties. The loan facility will provide the company with increased capital resources, allowing it to seize attractive opportunities in the market and enhance its position as a leading net lease real estate investment trust (REIT).
Initially, the 2030 Term Loan will carry an annual interest rate based on the term SOFR (Secured Overnight Financing Rate) plus an applicable margin. This adjustable rate structure will ensure that the company benefits from any future changes in the overall interest rate environment. In addition, Essential Properties Realty Trust has the option to exercise extension options to further align the term of the loan with its long-term growth s.
We are excited to announce the closing of this new unsecured term loan facility, which significantly strengthens our capital position and supports our ongoing growth initiatives, said Pete Mavoides, CEO of Essential Properties Realty Trust. This financing will provide us with additional liquidity to expand our portfolio of single-tenant properties, positioning us to capture attractive investment opportunities and create long-term value for our shareholders.
In recent years, Essential Properties Realty Trust has experienced significant growth and success due to its unique investment strategy, focusing on acquiring and managing net lease properties. Net lease investments offer stable and predictable cash flows for investors, with long-term leases typically ranging from 10 to 20 years. These properties are often leased to high-quality tenants, including large retail chains, convenience stores, and quick-service restaurants.
The new unsecured term loan facility will further reinforce Essential Properties Realty Trust’s strong financial position, allowing it to continue its pursuit of high-quality single-tenant properties across the United States. By expanding its portfolio, the company will enhance its cash flow potential, increase diversification, and drive sustainable long-term growth.
In conclusion, the $450 million unsecured term loan facility is a strategic move for Essential Properties Realty Trust, formalizing its commitment to growth and expansion. The financing will provide the necessary capital resources to capitalize on attractive investment opportunities in the net lease market, further solidifying the company’s position as a leading player in the industry.
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