Getty Realty Corp. announced a private placement of a new senior unsecured term loan with a group of existing lenders in an aggregate principal amount of $150 million on October 17, 2023. The term loan matures on October 17, 2025 with one twelve-month extension exercisable at the company's option, subject to certain conditions.

The loan is comprised of an initial principal amount of $75 million that was funded at closing and used to repay amounts outstanding under the company?s revolving credit facility, and an additional principal amount of $75 million that can be funded in a single draw at the company?s option any time on or prior to the 180th day following the closing date. The term loan bear interest at a rate equal to the sum of a SOFR rate plus a SOFR adjustment of 0.10% plus a margin of 1.30% to 1.90% or the sum of a base rate plus a margin of 0.30% to 0.90% based on the company's consolidated total indebtedness to total asset value ratio at the end of each quarterly reporting period. In connection with the term loan, the company entered into $150 million of interest rate swaps to fix SOFR at 4.73% until maturity.

Including the impact of the swaps, the effective interest rate on the term loan is 6.13% based on the company's consolidated total indebtedness to total asset value ratio as of September 30, 2023.