NexPoint Residential Trust gets $250 million three-year revolver

By Wendy Van Sickle

Columbus, Ohio, July 1 – NexPoint Real Estate Finance, Inc., through its operating partnership, NexPoint Residential Trust Operating Partnership, LP, entered on June 30 into a secured $250 million revolving credit facility with Truist Bank as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility will mature on June 30, 2024 and has a one-year extension option.

Borrowings bear interest at Libor plus a margin ranging from 190 basis points to 240 bps, and the commitment fee ranges from 15 bps to 25 bps, depending on leverage ratio.

There is a $100 million accordion feature.

Keybank NA and Citizens Bank, NA are the documentation agents.

The operating partnership terminated its $225 million revolver with Truist as agent in connection with the new credit facility.

Proceeds may be used to fund a portion of the cost to consummate real estate acquisitions and related investments made and for general corporate purposes. Up to $10 million of proceeds at a time may be distributed to the parent to fund the cost of the acquisition of shares of capital stock of the parent purchased from unrelated third-party investors.

The real estate investment trust is affiliated with Highland Capital, a Dallas-based investment management firm.

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