Netstreit Corp. has expanded its debt capacity by entering into incremental term loans and a new $400 million facility, moves that allow the company to retire a maturing obligation and adjust its existing credit spreads. The transactions, disclosed in a Form 8-K filed with the Securities and Exchange Commission on September 28, 2026, involve amendments to agreements with PNC Bank, National Association, Wells Fargo Bank, National Association, and Truist Bank.
The primary driver of the restructuring was the need to address a $200.0 million term loan scheduled to mature in February 2028. Netstreit, L.P., the borrower for the company, used funds from the new incremental loans and remaining draws on an existing facility to repay that debt in full. This action removes an imminent refinancing risk from the company's balance sheet while simultaneously increasing its total borrowing capacity.
Under the First Amendment to the Term Loan Agreement with PNC Bank, the company secured a $100.0 million increase to its existing 5.5-year senior unsecured term loan, bringing the aggregate size of that facility to $300 million. Additionally, the company increased its 7-year senior unsecured term loan by $50.0 million, also raising its total size to $300 million. These incremental amounts were fully funded on the closing date of September 28, 2026.
A significant portion of the new capital structure involves a new $400.0 million senior unsecured delayed draw term loan facility, designated as the 2033 Term Loan. This facility matures on September 28, 2033, and remains undrawn as of the closing date. The company has until September 28, 2027, to draw on these funds. If portions of this loan remain undrawn, they will accrue a ticking fee of 0.20% per annum starting 91 days after the closing date.
The pricing of these new facilities is tied to specific benchmarks. For the 2031 Term Loan, interest rates are determined by either SOFR plus a margin ranging from 0.75% to 1.55%, or a Base Rate plus a margin ranging from 0.00% to 0.55%. The 2032 and 2033 Term Loans carry higher margins: SOFR plus a range of 1.15% to 2.20%, or a Base Rate plus a range of 0.15% to 1.20%. These margins are variable and depend on Netstreit's credit rating and consolidated total leverage ratio.
In addition to the new PNC facilities, Netstreit executed parallel amendments with Wells Fargo Bank and Truist Bank. These conforming changes reduced the applicable margin spreads under both the Wells Fargo Credit Agreement and the PNC Credit Agreement. The company and its material subsidiaries reaffirmed their guarantees for obligations under all amended agreements.
The prepayment terms for the new 2033 Term Loan include a premium structure. Any amount repaid during the first year following the closing date incurs a prepayment premium of 2.0%, while amounts repaid during the second year incur a premium of 1.0%. The company also reduced the applicable margin spread under the existing 2031 Term Loan by five basis points as part of the amendment.