NNN REIT, Inc. Announces New $300 Million Term Loan

NNN REIT (NYSE: NNN) closed a $300 million senior unsecured delayed draw term loan facility with a six-month delayed draw and an accordion to increase the facility to $500 million.

Rhea-AI Summary

NNN REIT (NYSE: NNN) closed a $300 million senior unsecured delayed draw term loan facility with a six-month delayed draw and an accordion to increase the facility to $500 million. The Term Loan matures on February 15, 2029 and includes two one-year extension options. No funds have been drawn to date. Based on current credit ratings, the applicable margin is 0.85%. The company expects to use future proceeds for general corporate purposes.

NNN also entered into forward starting swaps totaling $200 million that fix SOFR at 3.22% through January 15, 2029, and amended its existing $1.2 billion senior unsecured revolving credit facility to remove a 10-basis point SOFR credit spread adjustment. Joint lead arrangers included Wells Fargo Securities and BofA Securities.

Positive

• $300 million senior unsecured delayed draw term loan
• Accordion option increases facility to $500 million
• Term loan maturity on February 15, 2029 with two one-year extensions
• Forward starting swaps totaling $200 million fixing SOFR at 3.22% through January 15, 2029
• Amendment of $1.2 billion revolver removes 10-basis point SOFR spread adjustment

Negative

• No funds have been drawn on the Term Loan to date
• Term Loan is senior unsecured, offering no new secured liquidity

Argus Dec 18 session

-1.52% close to close Open Argus

Details

News Market Reaction – NNN

On Dec 18, the first trading day after this news, NNN closed 1.52% below the previous close.

Data tracked by StockTitan Argus for the Dec 18 session.

Key Figures

Term loan size: $300 million Accordion feature: $500 million Maturity date: February 15, 2029 +5 more

Term loan size

$300 million

Senior unsecured delayed draw term loan facility

Accordion feature

$500 million

Maximum aggregate facility size including accordion option

Maturity date

February 15, 2029

Initial term loan maturity before extension options

Extension options

Two one-year options

Potential extension beyond 2029 maturity

Applicable margin

0.85%

Margin on term loan based on current credit ratings

Forward swaps notional

$200 million

Forward starting swaps entered in anticipation of term loan

Fixed SOFR rate

3.22%

SOFR fixed via swaps through January 15, 2029

Revolver size

$1.2 billion

Senior unsecured revolving credit facility amended

Historical Context

5 past events · Latest: Nov 04

5 events

1. Nov 04

   Q3 2025 earnings

   24h Move

   -2.6%

   Raised 2025 guidance with steady Core FFO and AFFO growth but shares fell.

2. Oct 14

   Dividend declaration

   24h Move

   -0.1%

   Quarterly dividend of $0.60 and 36-year increase streak met with slight dip.

3. Sep 24

   Earnings call notice

   24h Move

   +0.1%

   Announcement of Q3 release date and call saw essentially flat price reaction.

4. Aug 05

   Q2 2025 earnings

   24h Move

   -2.5%

   Strong Q2, raised guidance and higher dividend yet stock traded lower next day.

5. Aug 01

   Management change

   24h Move

   +1.8%

   Appointment of new CIO with deep real estate capital markets experience lifted shares.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior unsecured delayed draw term loan facility, accordion option, SOFR, forward starting swaps, +4 more

8 terms

senior unsecured delayed draw term loan facility financial

"announced the closing of a $300 million senior unsecured delayed draw term loan facility"

A senior unsecured delayed draw term loan facility is a committed loan arrangement that gives a borrower the right to take one or more lump-sum loans later (delayed draw) under a fixed repayment schedule (term loan). It ranks ahead of equity but is not backed by specific collateral (senior, unsecured), so lenders have priority in case of default but rely on the borrower’s general credit; investors watch it because it affects a company’s debt load, repayment risk, and future cash needs like a reserved but interest-bearing credit line.

accordion option financial

"an accordion option to increase the aggregate facility size to up to $500 million"

An accordion option is a contractual right built into a financing agreement that lets a company expand the number or size of securities it can issue — for example adding more shares or increasing a loan facility — without a separate, lengthy approval process. Think of it like an accordion instrument that can stretch when needed; for investors it matters because exercising the option can change the supply of securities, dilute existing ownership, and alter future fundraising and control dynamics.

SOFR financial

"forward starting swaps totaling $200 million that fix SOFR at 3.22%"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

forward starting swaps financial

"NNN entered into forward starting swaps totaling $200 million"

A forward starting swap is a contract agreed today that will begin at a specified future date, where two parties exchange payment streams—typically a fixed rate for a variable rate tied to an interest benchmark. Investors and treasurers use them to lock in future borrowing costs or hedge anticipated interest-rate exposure, like making a reservation now to start a loan at a known rate later, avoiding uncertainty about rates when the start date arrives.

revolving credit facility financial

"amended its existing $1.2 billion senior unsecured revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

credit spread adjustment financial

"to remove the 10-basis point SOFR credit spread adjustment"

A credit spread adjustment is a change made to the expected return or price of a debt instrument to reflect the market’s view of the borrower’s risk of default. Think of it as adding or subtracting a safety margin to the interest rate you demand for lending to someone: wider adjustments mean greater perceived risk and lower bond prices, while narrower adjustments mean lower perceived risk and higher prices. For investors this directly affects yield, portfolio valuation and comparisons between borrowers.

administrative agent financial

"Wells Fargo Bank, National Association acting as the Administrative Agent"

An administrative agent is a bank or financial firm appointed to handle the day-to-day paperwork and communication for a group of lenders on a loan or credit agreement, acting as the central point for collecting payments, distributing funds, monitoring covenants, and sharing information. For investors, the administrative agent matters because it influences how quickly lenders receive updates, how smoothly repayments and waivers are handled, and how effectively the lending group enforces terms — think of it as a property manager coordinating tasks for multiple owners.

syndication agent financial

"Bank of America, N.A. acting as the Syndication Agent"

A syndication agent is the financial firm that organizes and manages a group of lenders or investors who jointly provide a loan or buy a new security. Acting like the lead coordinator in a group purchase, it negotiates terms, divides the deal into portions, handles paperwork and communications, and monitors payments; its efficiency and reputation influence pricing, investor confidence and how smoothly capital is raised or recovered in trouble.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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ORLANDO, Fla., Dec. 17, 2025 /PRNewswire/ -- NNN REIT, Inc. (NYSE: NNN) ("NNN" or the "Company"), a real estate investment trust, today announced the closing of a $300 million senior unsecured delayed draw term loan facility (the "Term Loan"). The Term Loan has a six-month delayed draw feature and an accordion option to increase the aggregate facility size to up to $500 million. The Term Loan matures on February 15, 2029, with two one-year extension options. No funds have been drawn on the Term Loan to date. Based on NNN's current credit ratings, the applicable margin on the Term Loan is 0.85%. The Company expects to use future proceeds from the Term Loan for general corporate purposes.

"We are pleased with today's announced execution, which enhances the Company's financial flexibility and supports NNN's long-term growth strategy," said Vincent H. Chao, Chief Financial Officer. "We appreciate the continued support from our banking partners as we position the Company for sustained success and to extend its 36-year track record of consecutive annual dividend increases."

In anticipation of the Term Loan, NNN entered into forward starting swaps totaling $200 million that fix SOFR at 3.22% through January 15, 2029.

Additionally, NNN amended its existing $1.2 billion senior unsecured revolving credit facility to remove the 10-basis point SOFR credit spread adjustment.

Wells Fargo Securities, LLC and BofA Securities, Inc., served as the Joint Lead Arrangers and Joint Bookrunners, with Wells Fargo Bank, National Association acting as the Administrative Agent and Bank of America, N.A. acting as the Syndication Agent.

Truist Securities, Inc., PNC Capital Markets LLC, U.S. Bank National Association, Royal Bank of Canada and TD Bank, N.A. served as Joint Lead Arrangers, with Truist Bank, PNC Bank, National Association, U.S. Bank National Association, Royal Bank of Canada and TD Bank, N.A. acting as Documentation Agents, and with Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and Raymond James Bank also participating in the transaction.

About NNN REIT, Inc.
NNN REIT invests in high-quality properties subject generally to long-term, net leases with minimal ongoing capital expenditures. As of September 30, 2025, the Company owned 3,697 properties in 50 states with a gross leasable area of approximately 39.2 million square feet and a weighted average remaining lease term of 10.1 years. For more information on the Company, visit www.nnnreit.com.

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SOURCE NNN REIT, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the key terms of NNN REIT's $300 million term loan (NYSE: NNN)?

The term loan is a $300 million senior unsecured delayed draw with a six-month delayed draw, accordion to $500 million, maturing Feb 15, 2029, and two one-year extension options.

Has NNN REIT drawn any funds from the new Term Loan as of Dec 17, 2025?

No, no funds have been drawn on the Term Loan to date.

How did NNN REIT hedge interest rates for the Term Loan (NNN)?

NNN entered into forward starting swaps totaling $200 million that fix SOFR at 3.22% through Jan 15, 2029.

What is the borrowing margin on NNN REIT's Term Loan based on current ratings?

The applicable margin on the Term Loan is 0.85% based on NNN's current credit ratings.

What change was made to NNN REIT's existing revolving credit facility on Dec 17, 2025?

NNN amended its $1.2 billion senior unsecured revolving credit facility to remove the 10-basis point SOFR credit spread adjustment.