Modiv expands revolver to $150 million, term loan to $250 million

By Sara Rosenberg

New York, Oct. 27 – Modiv Operating Partnership LP amended its credit agreement, increasing the revolving credit facility due January 2026 to $150 million from $100 million and increasing the term loan due January 2027 to $250 million from $150 million, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

The increases were done under the accordion feature.

In addition, the amendment revised the accordion feature to allow the company to request additional revolver and term loan commitments up to a total of $750 million.

Pricing on the revolver is SOFR plus 155 basis points with 10 bps CSA. The spread is based on a grid tied to leverage.

Term loan pricing will vary based on leverage. On Oct. 26, the company purchased a five-year swap at 3.44% on an additional $100 million of its term loan that will result in a fixed interest rate of 5.04% on additional draws under the expanded term loan when leverage ratio is less than or equal to 40%.

KeyBanc Capital Markets Inc., Truist Securities Inc. and Huntington National Bank acted as joint lead arrangers on the deal. KeyBank is the administrative agent.

The amendment was completed on Oct. 21.

“We appreciate and value the strong support shown by our bank group. With the closing of the expanded credit facility, we now have meaningful liquidity to accelerate our investment strategy focused on net-leased industrial manufacturing properties,” said Aaron Halfacre, chief executive officer, in a news release.

Modiv is a Newport Beach, Calif.-based real estate investment trust that acquires, owns and manages a portfolio of single-tenant net-lease real estate properties.

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