NNN REIT, INC. PRICES OFFERING OF $500 MILLION OF 4.600% SENIOR UNSECURED NOTES DUE 2031

Rhea-AI Summary

NNN REIT (NYSE: NNN) has announced the pricing of $500 million in senior unsecured notes due 2031. The notes, priced at 99.182% of principal value, will carry a 4.600% interest rate with a yield to maturity of 4.766%. Interest payments will be made semi-annually starting February 15, 2026.

The offering is expected to close around July 1, 2025. The company plans to use the proceeds to repay outstanding credit facility debt, fund future property acquisitions, and for general corporate purposes. Multiple financial institutions, including BofA Securities, Wells Fargo Securities, and PNC Capital Markets, are serving as joint book-running managers for the offering.

Positive

• Successful pricing of $500 million notes offering demonstrates strong market access
• Strategic debt refinancing through credit facility repayment
• Funds secured for future property acquisitions and growth
• Fixed interest rate of 4.600% provides predictable debt servicing costs

Negative

• Additional long-term debt obligation until 2031
• Notes priced at a discount (99.182%) to par value
• Effective yield of 4.766% represents significant interest expense

Insights

REIT Financial Analyst

NNN REIT's $500M bond offering strengthens its balance sheet while securing favorable long-term financing for expansion.

NNN REIT's $500 million debt offering represents a strategic financial move that will reshape its capital structure. Priced at 99.182% of face value with a 4.600% coupon rate (yielding 4.766% to maturity), this 6-year note offering secures medium-term financing at a reasonable cost in the current interest rate environment.

The intended use of proceeds reveals important strategic priorities: first, paying down the company's revolving credit facility, which typically carries variable interest rates; second, funding future property acquisitions, signaling continued portfolio expansion. This debt refinancing shifts short-term variable-rate debt to fixed-rate longer-term debt, providing better interest rate certainty and extended maturity profiles.

The 4.766% yield indicates moderate but not excessive market concern about NNN's credit quality. The slight discount to par (99.182%) is standard market practice to achieve the target yield. With semi-annual interest payments beginning February 2026, this creates a predictable cash outflow structure.

The impressive syndicate of underwriters (BofA, Wells Fargo, PNC, RBC, etc.) suggests strong institutional support for the offering. For a REIT, securing this level of debt financing enhances acquisition capacity without immediate equity dilution, potentially improving return metrics if the spread between property cap rates and this debt cost remains favorable.

ORLANDO, Fla., June 24, 2025 /PRNewswire/ -- NNN REIT, Inc. (NYSE: NNN) (the "Company" or "NNN"), a real estate investment trust, today announced that it has priced its public offering of $500,000,000 of 4.600% senior unsecured notes due 2031 (the "notes"). The notes were offered at 99.182% of the principal amount with a yield to maturity of 4.766%. Interest on the notes will be payable semi-annually on February 15 and August 15 of each year, commencing on February 15, 2026. The notes mature on February 15, 2031. The offering is expected to close on or about July 1, 2025, subject to customary closing conditions. BofA Securities, Inc., Wells Fargo Securities, LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, SMBC Nikko Securities America, Inc., and Truist Securities, Inc. are acting as joint book-running managers and Raymond James & Associates, Inc. and Stifel, Nicolaus & Company, Incorporated are acting as co-managers for the offering. The Company intends to use the net proceeds from the offering of the notes to repay all of the outstanding indebtedness under its credit facility, to fund future property acquisitions and for general corporate purposes, or a combination of the foregoing. Pending application of the net proceeds from the offering of the notes, the Company may invest the net proceeds in short-term, income-producing investments.

The offering is being made only by means of a prospectus supplement and accompanying prospectus, which are part of an effective shelf registration statement the Company filed with the Securities and Exchange Commission ("SEC"). You may obtain copies of these documents for free by visiting EDGAR on the SEC's website at www.sec.gov. Alternatively, copies of these documents, when available, may be obtained by contacting BofA Securities, Inc., by telephone: 1-800-294-1322 or by email at dg.prospectus_requests@bofa.com; Wells Fargo Securities, LLC, by email at wfscustomerservice@wellsfargo.com or by calling toll-free at 1-800-645-3751; PNC Capital Markets LLC, by email at pnccmprospectus@pnc.com or by calling toll-free at 855-881-0697; RBC Capital Markets, LLC, by calling toll-free at 866-375-6829; TD Securities (USA) LLC, by calling toll-free at 1-855-495-9846; or U.S. Bancorp Investments, Inc., by calling toll-free at 1-877-558-2607. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

ABOUT NNN REIT, INC.

NNN invests in high-quality properties subject generally to long-term, net leases with minimal ongoing capital expenditures. As of March 31, 2025, the Company owned 3,641 properties in 50 states with a gross leasable area of approximately 37.3 million square feet and a weighted average remaining lease term of approximately 9.9 years.

FORWARD-LOOKING STATEMENTS

Statements in this press release that are not strictly historical are "forward-looking" statements. These statements generally are characterized by the use of terms such as "believe," "expect," "in position," "intend," "may," "estimated," or other similar words or expressions. Forward-looking statements involve known and unknown risks, which may cause the Company's actual future results to differ materially from expected results. For example, the fact that this offering has priced may imply that this offering will close, but the closing is subject to conditions customary in transactions of this type and may be delayed or may not occur at all. No assurance can be given that the offering discussed above will be completed on the terms described or at all or that the net proceeds of this offering will be used as described. Completion of this offering on the terms described, and the application of the net proceeds of this offering, are subject to numerous possible events, factors and conditions, many of which are beyond the control of the Company or are unknown to it. Other risks include, among others, general economic conditions, including inflation, local real estate conditions, changes in interest rates, increases in operating costs, the preferences and financial condition of the Company's tenants, the availability of capital, and risks related to the Company's status as a real estate investment trust. Additional information concerning these and other factors that could cause actual results to differ materially from these forward-looking statements is contained from time to time in the Company's SEC filings, including, but not limited to, the Company's (i) Annual Report on Form 10-K for the year ended December 31, 2024 and (ii) subsequently filed Quarterly Reports on Form 10-Q. Copies of such filings may be obtained from the Company or SEC. Such forward-looking statements should be regarded solely as reflections of the Company's current operating plans and estimates. Actual results may differ materially from what is expressed or forecast in this press release. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.

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SOURCE NNN REIT, Inc.

FAQ

What is the size and interest rate of NNN REIT's new notes offering?

NNN REIT is offering $500 million in senior unsecured notes with a 4.600% interest rate and a yield to maturity of 4.766%.

When will NNN REIT's new notes mature?

The notes will mature on February 15, 2031.

How will NNN REIT use the proceeds from the notes offering?

The proceeds will be used to repay outstanding credit facility debt, fund future property acquisitions, and for general corporate purposes.

When will interest payments be made on NNN REIT's 2031 notes?

Interest will be paid semi-annually on February 15 and August 15, starting February 15, 2026.

Who are the lead managers for NNN REIT's notes offering?

The joint book-running managers include BofA Securities, Wells Fargo Securities, PNC Capital Markets, RBC Capital Markets, TD Securities, and several other major financial institutions.