Broadstone Net Lease Bolsters Financial Flexibility with $1.5 Billion Credit Facilities

Broadstone Net Lease, Inc. (NYSE: BNL) has announced the successful closing of a $1.5 billion Amended and Restated Credit Agreement, comprising a $1.0 billion revolving credit facility and a $500 million term loan. This strategic move enhances the company's financial flexibility, providing increased liquidity, improved borrowing rates, and favorable adjustments to financial covenants that align with its investment strategy.



The new credit facilities replace BNL's existing $400 million term loan due in February 2026, extending the maturity date to March 2028 with two 12-month extension options. Additionally, the revolving credit facility has an initial term of four years, maturing in March 2029, with two six-month extension options. This extended maturity profile provides BNL with no near-term debt maturities until April 2027, as stated by Kevin Fennell, Chief Financial Officer of Broadstone.

The new term loan also includes a three-month delayed-draw feature for the incremental $100 million of commitments, providing BNL with additional flexibility to deploy capital when needed, rather than immediately. This feature allows BNL to better manage its liquidity and ensure that it has the necessary funds to invest in new properties or projects when the timing is right.

The extended maturity profile of the new credit facilities enables BNL to better manage its debt service obligations and interest expense in the near and long term. By pushing out the maturity dates, BNL can focus on its growth objectives without the immediate pressure of refinancing or repaying debt. This also provides the company with ample liquidity to capitalize on additional investment opportunities.

Furthermore, the new credit facilities offer improved borrowing rates, which can help reduce BNL's interest expense in the long term. The delayed-draw feature on the term loan provides additional flexibility for deploying capital when needed, rather than immediately, allowing BNL to optimize its capital expenditure decisions and potentially lower its interest expense.

In conclusion, Broadstone Net Lease's new $1.5 billion credit facilities represent a significant financial restructuring that strengthens the REIT's capital position in multiple ways. The extended maturity profile, increased borrowing capacity, and improved borrowing rates provide BNL with enhanced financial flexibility, enabling the company to better manage its debt service obligations and interest expense in the near and long term. With ample liquidity and no near-term debt maturities, BNL is well-positioned to execute on its growth objectives through its core building blocks.