Essential Properties Realty Trust Secures a $430M Syndicated Loan

The loan facility has a maturation date of November 2026 and an accordion feature to increase the availability of funds to $500 million, subject to closing conditions.

Manhattan, NYC.

NEW YORK CITY— Essential Properties Realty Trust, a real estate firm focused on single-tenant occupied properties, has secured a $430 million syndicated senior unsecured term loan facility. The loan has a maturation date of November 2026 and an accordion feature to increase the availability of funds to $500 million, subject to closing conditions. Capital One arranged the financing on behalf of Essential Properties.

The Princeton, New Jersey-based firm used a partial amount of the loan proceeds to make a $70.4 million prepaid payment to its Series 2016-1 ABS Notes at par plus accrued interest, while it canceled a Class A Series 2016-1 ABS Notes that it purchased in May 2019, thus providing capacity for future growth, while extending its debt maturities.

“In addition to providing a smooth and timely execution process, Capital One brought in significant capacity from new lenders to this transaction,” said Hillary Hai, chief financial officer of Essential Properties, in a prepared statement.

Essential Properties’ investment strategy includes acquiring, owning and managing primarily single-tenant properties leased to middle-market companies operating service- and experience-based businesses.