CMFT SCF signs $300 million three-year facility with JPMorgan

By William Gullotti

Buffalo, N.Y., July 21 – CMFT SCF Borrower, LLC, an indirect wholly owned subsidiary of CIM Real Estate Finance Trust Inc., entered a $300 million credit facility with JPMorgan Chase Bank, NA as administrative agent on July 15, according to an 8-K filed with the Securities and Exchange Commission.

The facility is comprised of a $100 million term loan facility and a $200 million revolver, both set to mature July 15, 2025.

There is a $30 million sublimit for letters of credit.

Borrowings will bear interest at SOFR plus a margin ranging from 150 basis points to 237.5 bps. The letter-of-credit fee will span the same range as the margins with both determined by the company’s adjusted leverage ratio.

CMFT will also pay a facility fee on the unused portion of the revolver of either 20 bps, if the unused portion of the revolver is less than or equal to 50% of the total commitments, or 25 bps.

Outstanding amounts may be prepaid, in whole or in part, without premium or penalty if prior written notice is received by the administrative agent and the prepayment follows certain guidelines regarding principal amounts tendered. Any prepayment must include accrued interest on the amount prepaid plus any breakage amount.

The agreement contains customary representations, warranties, borrowing conditions and affirmative, negative and financial covenants, including minimum tangible net worth, debt service coverage and leverage ratio requirements and maximum variable rate and recourse debt requirements.

BofA Securities, Inc. and PNC Capital Markets, LLC are the lead arrangers and bookrunners with the administrative agent.

In addition to serving as administrative agent, lead arranger and bookrunner, JPMorgan is also the letter of credit issuer as well as a syndication agent with PNC Bank, NA.

At closing, CIM paid off and terminated the $212.4 million outstanding balance under its CIM Income NAV agreement with JPMorgan Chase Bank that was set to mature Sept. 6.

CIM is a real estate investment trust that primarily owns and operates a diversified portfolio of commercial real estate assets consisting of net leased properties.

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