Modiv obtains $250M pro rata credit facility

Real estate investment company Modiv Inc., operating through its operating partnership Modiv Operating Partnership LP, disclosed that on Jan. 18 the company entered into a $150 million term loan A due January 2027 and a $100 million revolver due January 2026.

Pricing is tied to a leverage-based grid, at 160-210 basis points over the secured overnight financing rate, opening at Sofr+180 on the term loan, and at Sofr+165-215, opening at Sofr+185 on the revolver.

KeyBanc Capital Markets, BMO Capital Markets, Truist Securities and The Huntington National Bank acted as joint lead arrangers. KeyBank is administrative agent.

The company has borrowed $100 million under the new term loan and $55.8 million under the revolver to refinance existing mortgages. The term loan includes a $50 million delayed-draw tranche that is available through July 2022.

The facility is covered by covenants pertaining to ratios of total debt to total asset value, total EBITDA to total fixed charges, minimum total tangible net worth, total secured debt and maximum total secured recourse debt.

Modiv primarily invests in real estate-owning entities that own single-tenant income-producing properties.