Invitation Homes gets $725 million loan with delayed-draw feature

By Wendy Van Sickle

Columbus, Ohio, June 22 – Invitation Homes, Inc. entered into a new $725 million seven-year unsecured sustainability-linked term loan, according to a news release.

The term loan bears interest at rates based on the company’s senior unsecured credit rating, with an initial interest rate of adjusted term SOFR plus a margin of 125 basis points based on the company’s current credit ratings. The margin can range from 115 bps to 120 bps, according to an 8-K filing with the Securities and Exchange Commission.

There is a fee of 20 bps per annum on the daily unused balance of the delayed-draw commitments.

Pricing can improve if the company meets certain environmental and social governance performance targets, similar to its existing five-year unsecured credit facility.

The company received $150 million of proceeds in an initial draw at closing, and it may elect to receive the remaining proceeds in up to three additional draws over a six-month period. The initial proceeds, along with cash on hand, will be used as part of a series of transactions to fully repay the $232.7 million principal balance of Invitation Homes’ 2018-2 securitization.

An accordion feature permits the company to increase the size of the term loans or add incremental loans up to a total amount of loans under the credit agreement of $950 million.

The maturity date of the term loans is June 22, 2029. No amortization payments are required prior to then.

The loan was led by Capital One, NA as administrative agent and sustainability agent. Capital One, Huntington National Bank, KeyBanc Capital Markets, Inc., M&T Bank, PNC Capital Markets LLC, Regions Capital Markets, and U.S. Bank NA acted as joint lead arrangers and joint bookrunners. BMO Capital Markets Corp. and Raymond James Bank acted as passive joint lead arrangers.

Syndication agents are Huntington National Bank, KeyBank NA, M&T Bank, PNC Bank, NA, Regions Bank and U.S. Bank.

Bank of Montreal and Raymond James Bank are the documentation agents.

Invitation Homes is a Dallas-based property manager.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.