NNN REIT, Inc. closed a $300 million senior unsecured delayed‑draw term loan facility on December 17 2025. The loan carries a six‑month delayed‑draw period and an accordion option that allows the aggregate facility to expand to $500 million. It matures on February 15 2029 and includes two one‑year extension options.
The financing is a key component of NNN’s strategy to maintain a conservative leverage profile while positioning the company for record acquisition activity at 7.4% cap rates. With a current ratio of 0.46, the new facility provides critical liquidity to cover short‑term obligations and to fund future purchases without diluting equity or over‑leveraging the balance sheet.
Interest‑rate risk is mitigated through forward‑starting swaps totaling $200 million that lock SOFR at 3.22% through January 15 2029. The loan’s margin of 0.85% reflects NNN’s BBB+ credit rating and aligns with the company’s cost of capital expectations.
The transaction also coincides with an amendment to NNN’s existing $1.2 billion revolving credit facility, which removed a 10‑basis‑point SOFR credit‑spread adjustment, further reducing borrowing costs on that line of credit.
CFO Vincent H. Chao said the deal “enhances the Company’s financial flexibility and supports NNN’s long‑term growth strategy.” He added that the financing will help sustain the firm’s 36‑year track record of consecutive dividend increases while keeping debt levels manageable.
The new term loan, combined with the revolving credit amendment, strengthens NNN’s balance sheet, preserves dividend policy, and provides a robust platform for opportunistic acquisitions in the net‑lease market.
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