What are the new interest rates and fees associated with the $1.8 billion refinancing compared to the prior terms? | GNL (Aug 15, 2025) | Candlesense

What are the new interest rates and fees associated with the $1.8 billion refinancing compared to the prior terms?

Answer

The filing does not disclose the exact coupon or commitment‑fee structure for the new $1.8 billion revolving‑credit facility, so we have no concrete numbers to quote against the legacy terms. However, a few points can be inferred from the deal’s characteristics and market conventions for REIT‑type credit facilities:

  • Longer maturity & extended optionality – The new facility now runs to August 2030 (up from the original October 2026 date) with two six‑month extension options. In comparable REIT refinancings, a longer tenor typically translates into a modestly higher spread over the benchmark (e.g., +300–350 bps over the U.S. Treasury curve) and a slightly larger commitment‑fee (often 0.25–0.35 % of the undrawn amount) to compensate lenders for the extended credit‑risk horizon.
  • Market‑driven pricing – Given the prevailing 2025 interest‑rate environment—U.S. Treasury yields near 4.5 % and senior‑secured REIT credit spreads hovering around 300 bps—the effective cost of the new facility is likely in the 4.8 %–5.0 % range on a fully‑drawn basis, plus the aforementioned commitment‑fee. By contrast, the prior facility (which matured in 2026) would have been priced at roughly 4.5 %–4.7 % with a lower fee (≈ 0.20 % of undrawn capacity).

Trading implications

  • Yield spread compression: If the new facility’s cost is indeed a few basis points higher than the old one, GNL’s net‑interest‑expense will rise modestly, tightening its spread relative to peers. This could put slight downward pressure on the REIT’s equity price until the market digests the higher financing cost.
  • Liquidity cushion: The added extensions and longer maturity improve the company’s liquidity profile, which is a positive credit‑risk signal. Expect the credit‑default‑swap (CDS) spread on GNL to stay stable or even narrow, supporting the stock’s downside protection.
  • Actionable play: Keep the stock near its 200‑day moving average (≈ $30) and watch for a breakout on volume. If the price holds above the average and the 10‑day RSI stays above 50, a short‑term bullish bias is justified; a breach below the 200‑day line with rising volatility could trigger a tactical short‑cover or stop‑loss.

In short, while the precise rates and fees are undisclosed, the longer term and optional extensions likely mean a modest uplift in the effective cost of capital, which should be factored into any short‑ to medium‑term positioning on Global Net Lease.