NexPoint Residential Trust, Inc. Completes Refinancing of Corporate Credit Facility
NexPoint Residential Trust (NYSE:NXRT) has successfully refinanced its corporate revolving credit facility with multiple banking partners including J.P. Morgan Chase Bank, Raymond James Bank, Royal Bank of Canada, and Synovus. The new facility extends to June 2028 with an option to extend until June 2029.
Key terms include a reduced interest rate spread of 150-225 basis points over SOFR, representing a 15 bps improvement across all leverage ratios. The facility includes a potential $200 million expansion option subject to lender approval. The credit facility is secured by equity interests in mortgaged properties and can be used for acquisitions, working capital, and general corporate purposes.
NexPoint Residential Trust (NYSE:NXRT) ha completato con successo la rifinanziamento della sua linea di credito revolving aziendale con diversi partner bancari, tra cui J.P. Morgan Chase Bank, Raymond James Bank, Royal Bank of Canada e Synovus. La nuova linea di credito 猫 estesa fino a giugno 2028, con un'opzione di rinnovo fino a giugno 2029.
I termini principali prevedono uno spread di interesse ridotto di 150-225 punti base sopra il SOFR, che rappresenta un miglioramento di 15 punti base su tutti i livelli di leva finanziaria. La linea di credito include un'opzione di espansione di 200 milioni di dollari, soggetta all'approvazione dei finanziatori. La garanzia della linea di credito 猫 costituita da partecipazioni azionarie in propriet脿 ipotecate e pu貌 essere utilizzata per acquisizioni, capitale circolante e scopi aziendali generali.
NexPoint Residential Trust (NYSE:NXRT) ha refinanciado con 茅xito su l铆nea de cr茅dito revolvente corporativa con varios socios bancarios, incluyendo J.P. Morgan Chase Bank, Raymond James Bank, Royal Bank of Canada y Synovus. La nueva l铆nea se extiende hasta junio de 2028 con opci贸n a prorrogar hasta junio de 2029.
Los t茅rminos clave incluyen un spread de tasa de inter茅s reducido de 150-225 puntos base sobre SOFR, lo que representa una mejora de 15 puntos base en todos los niveles de apalancamiento. La l铆nea incluye una opci贸n de expansi贸n de 200 millones de d贸lares sujeta a la aprobaci贸n de los prestamistas. La facilidad de cr茅dito est谩 garantizada por intereses accionarios en propiedades hipotecadas y puede utilizarse para adquisiciones, capital de trabajo y prop贸sitos corporativos generales.
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NexPoint Residential Trust (NYSE:NXRT) a r茅ussi 脿 refinancer sa facilit茅 de cr茅dit renouvelable d'entreprise avec plusieurs partenaires bancaires, dont J.P. Morgan Chase Bank, Raymond James Bank, Royal Bank of Canada et Synovus. La nouvelle facilit茅 est 茅tendue jusqu'脿 juin 2028 avec une option de prolongation jusqu'en juin 2029.
Les conditions cl茅s incluent un 茅cart de taux d'int茅r锚t r茅duit de 150 脿 225 points de base au-dessus du SOFR, ce qui repr茅sente une am茅lioration de 15 points de base sur tous les ratios d'endettement. La facilit茅 comprend une option d'extension de 200 millions de dollars sous r茅serve de l'approbation des pr锚teurs. La facilit茅 de cr茅dit est garantie par des participations dans des propri茅t茅s hypoth茅qu茅es et peut 锚tre utilis茅e pour des acquisitions, du fonds de roulement et des usages g茅n茅raux de l'entreprise.
NexPoint Residential Trust (NYSE:NXRT) hat seine revolvierende Unternehmenskreditfazilit盲t erfolgreich mit mehreren Bankpartnern, darunter J.P. Morgan Chase Bank, Raymond James Bank, Royal Bank of Canada und Synovus, refinanziert. Die neue Fazilit盲t l盲uft bis Juni 2028 mit einer Verl盲ngerungsoption bis Juni 2029.
Wesentliche Bedingungen umfassen einen reduzierten Zinsspread von 150-225 Basispunkten 眉ber dem SOFR, was eine Verbesserung von 15 Basispunkten 眉ber alle Verschuldungsgrade hinweg darstellt. Die Fazilit盲t beinhaltet eine m枚gliche Erweiterungsoption von 200 Millionen US-Dollar, die der Zustimmung der Kreditgeber unterliegt. Die Kreditfazilit盲t ist durch Eigenkapitalanteile an beliehenen Immobilien besichert und kann f眉r Akquisitionen, Betriebskapital und allgemeine Unternehmenszwecke verwendet werden.
- Interest rate spread improved by 15 basis points across all leverage ratios
- Option to increase credit facility by up to $200 million with lender approval
- Extended maturity to June 2028 with option for additional year to June 2029
- No outstanding indebtedness on existing facility indicates strong financial position
- Credit facility requires collateral in form of equity interests in mortgaged properties
Insights
NXRT secured improved credit facility terms with 15bps lower spread, creating flexibility for acquisitions without current leverage impact.
NexPoint Residential Trust has successfully refinanced its revolving credit facility with four major financial institutions, securing more favorable terms that strengthen its financial position. The new facility extends to June 2028 (potentially June 2029) and features a reduced interest rate spread鈥�15 basis points lower across all leverage ratios compared to the previous arrangement.
This refinancing represents a strategic enhancement to NXRT's capital structure. The improved spread directly translates to
What's particularly noteworthy is that NXRT currently has zero outstanding debt on this facility, indicating conservative leverage management. The credit line is secured by equity interests in the company's property-owning subsidiaries rather than direct property liens, preserving flexibility for property-specific financing.
The terms suggest strong lender confidence in NXRT's operational stability and management team. For a residential REIT, maintaining access to flexible capital at favorable rates creates optionality for opportunistic acquisitions鈥攃ritical in the multifamily sector where timing often drives investment returns. This refinancing positions NXRT to potentially capitalize on market dislocations without immediately adding leverage to its balance sheet.
The refinanced credit facility has an initial maturity of June 2028 that may be extended until June 2029. 聽At the Company's election, any amounts borrowed under the credit facility will have an interest rate equal to term Secured Overnight Financing Rate plus 150 basis points (or up to 225 basis points, depending on the immediately preceding quarterly total leverage ratio). The new credit facility spread has been improved by 15 bps across all leverage ratios compared to the prior corporate credit facility. Subject to conditions provided in the credit facility, the credit facility may be increased by up to an additional
"Our new credit agreement provides us with the flexibility to take advantage of new opportunities to drive growth and performance in improving fundamental and investment markets. We appreciate the strong support from all the bank teams involved in implementing this agreement and their confidence in our business and performance," said Matt McGraner, Chief Investment Officer. 聽
About NXRT
NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with "value-add" potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Forward-looking statements can often be identified by words such as "believe," "continue," "expect,"聽 "will," 聽"plan," "may" and similar expressions, and variations or negatives of these words, including related to the expected use of the credit facility and that the credit facility provides the Company with the flexibility to take advantage of new opportunities. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company's most recent Annual Report on Form 10-K and other filings with the SEC for a more complete discussion of the risks and other factors that could affect any forward-looking statements. The statements made herein speak only as of the date of this release and except as required by law, NXRT does not undertake any obligation to publicly update or revise any forward-looking statements.
Contact:
Kristen Griffith
Investor Relations
[email protected]
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SOURCE NexPoint Residential Trust, Inc.
FAQ
What are the key terms of NXRT's new credit facility refinancing?
Who are the banking partners in NXRT's refinanced credit facility?
How can NXRT use the refinanced credit facility?
What collateral secures NXRT's new credit facility?
