An indirect special-purpose subsidiary of Invitation Homes Inc. secured a seven-year, floating rate loan of about $1.30 billion from German American Capital Corp.
The loan has an initial 24-month term due July 9, 2020, with five 12-month extension options.
The interest rate for each of the six floating rate components of the facility, according to a filing, is individually calculated every month based on a spread over one-month London Interbank Offer Rate within the 1.00% to 2.25% range on top of a fixed servicing and CRE Finance Council licensing fee totaling 0.049%.
First priority mortgages on a portfolio of 6,662 single-family homes operated as rental properties by the borrowing subsidiary were used as security for the loan, as well as a first priority pledge on its equity interests.
The subsidiary will use proceeds from the loan to repay the balances outstanding under a mortgage loan, to fund certain reserves and for general corporate purposes.