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NEW YORK, Sept. 8, 2020 /PRNewswire/ — American Finance Trust, Inc. (Nasdaq: AFIN) (“AFIN” or the “Company”) announced today that the Company entered into a financing transaction with Bank of Texas to borrow $125 million in a syndicated balance sheet loan (the “Loan”) on three buildings located in Bridgewater, New Jersey that serve as the US Headquarters for Sanofi. A multinational, investment-grade pharmaceutical company, Sanofi’s campus is a mission critical facility for supporting operations in the United States.
“Thanks to the high quality of the Sanofi properties and our long-standing relationship with Bank of Texas, we were able to complete this financing on what we believe to be very attractive terms,” said Michael Weil, CEO of AFIN. “The Loan capitalizes on the historically low interest rate environment and Sanofi’s investment-grade credit rating to replace the existing financing, which had four months of term remaining, with new five-year financing fixed by swap at an interest rate of 3.22%, 194 basis points lower than the previous rate of 5.16%. Combined with the CMBS transaction we completed in July, AFIN has refinanced over $840 million of near-term maturing debt at lower interest rates and extended our weighted average debt maturity to 5.2 years(1) from 3.3 years, with no material near-term maturities remaining.”
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