AFIN B-1 Shares to Convert on October 10, Increases Credit Facility
October 5, 2018 | James Sprow | Blue Vault
American Finance Trust, Inc. (“AFIN”) announced on September 20, 2018, that all issued and outstanding shares of its Class B-1 common stock will automatically convert into shares of its Class A common stock on October 10, 2018. AFIN’s Class A shares trade on the Nasdaq under the symbol AFIN. The Class B-1 shares represent approximately 25% of AFIN’s total outstanding shares, with the remaining 25% represented by shares of AFIN’s Class B-2 common stock. The Class B-2 shares will automatically convert into Class A shares no later than January 15, 2019.
AFIN’s common stock closed at $14.77 per share on October 4. The REIT commenced its IPO as American Realty Capital Trust V in April 2013 issuing shares at a price of $25.00 per share. On October 1, 2018, the REIT announced that it intends to continue paying monthly dividends on each share of AFIN’s common stock at an annualized rate of $1.10 per share, a distribution yield of 7.45% at the $14.77 share price.
On October 5, AFIN announced the increase in its revolving unsecured corporate credit facility by $125 million, bringing total commitments to $540 million. The expanded facility affords AFIN additional capacity to finance single-tenant net lease and multi-tenant retail assets. The credit facility may be expanded under an “accordion” feature to $915 million subject to obtaining additional lender commitments. Borrowings will be used to finance portfolio acquisitions and for general corporate purposes. As of September 30, $261 million was drawn against the facility.
Commenting on the increase and expansion, Chief Executive Officer Michael Weil remarked, “the $125 million increase in the facility delivers AFIN additional flexibility as we pursue corporate initiatives. We value the confidence this expanded group has about our portfolio and investment strategy and appreciate the significant commitments to the facility offered by Compass Bank and Synovus Bank.”
The Credit Facility matures on April 26, 2022. AFIN will have a one-time right to extend the maturity date beyond April 26, 2022 for an additional term of one year.
Borrowings under the Credit Facility will bear interest at LIBOR plus an applicable margin ranging from 1.60% to 2.20%, depending on the Company’s consolidated leverage ratio.
Source: SEC
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American Finance Trust Announces Class B-1 Shares to Convert on October 10
