Global Net Lease, Inc. (NYSE: GNL) has announced the completion of a $237 million commercial mortgage-backed security loan secured by 20 U.S. industrial properties, previously secured under the company’s corporate credit facility. The loan has a 5-year term maturing in April 2029, with an interest-only fixed all-in interest rate of 5.74%, representing a 159 basis points reduction from the current floating interest rate on the U.S. dollar portion of the company’s corporate credit facility.
This move is expected to result in a significant reduction in annualized interest expense, with a decrease of over $3.5 million. Michael Weil, CEO of GNL, emphasized that the financing not only improves the financing profile of the 20 properties but also reduces the utilization of GNL’s corporate credit facility, providing additional flexibility and capacity to refinance near-term debt maturities through 2024. He also highlighted that the favorable financing terms achieved illustrate the high quality of the assets in the portfolio.
The restructuring is part of GNL’s strategic execution to lower existing cost of capital and improve the weighted average debt maturity. The lead lender for the loan is Bank of Montreal, with co-lenders including Barclays, KeyBank, and Société Générale.
This development demonstrates GNL's commitment to enhancing its financing strategy and optimizing its debt structure. The company's focus on managing a global portfolio of income-producing net lease assets across the U.S., and Western and Northern Europe, has been further strengthened by this move, marking a significant step in its financial management. Following these announcements, the company's shares moved 3.1%, and are now trading at a price of $7.54. For more information, read the company's full 8-K submission here.
