Getty Realty taps $200M term loan to fund Refuel store deal
What's the deal? Getty RealtyDealroom has a profile for this one. Try Dealroom → (NYSE: GTY), a net lease REIT focused on convenience and automotive retail real estate, has entered a $200 million senior unsecured term loan with a group of existing lenders. It used the proceeds to repay revolving credit borrowings, including funds tied to its recently completed Refuel transaction.
The terms: The loan matures October 16, 2028, with three optional 12-month extensions. Its effective interest rate at closing was 5.03%, with pricing set against Getty's credit rating.
Why now? The financing follows Getty's $260.9 million sale-leaseback with Refuel Operating Company, which added 41 convenience stores across four states under four 20-year leases. Getty expects to use about $100 million of the loan toward that deal.
What's the endgame? Getty is aiming to fund the Refuel acquisition on a leverage-neutral basis, pairing the loan with forward equity proceeds and selected property sales. The structure gives it room to keep buying: the company reported about $455.2 million invested year to date at a 7.1% initial cash yield.
The deal was structured as an amendment to Getty's existing credit agreement, which also cut borrowing costs on its revolver by removing a 10-basis-point adjustment on SOFR-linked borrowings.
"The new term loan effectively funds a portion of our recent Refuel transaction, as previously announced, and provides us with significant balance sheet flexibility as our platform continues to scale and the capital markets stabilize," said Brian Dickman, Getty's chief financial officer.
The signal: This is routine balance-sheet management, not a liquidity scramble. Getty reported more than $570 million of liquidity at the end of the second quarter and recently issued $250 million of 10-year notes, leaving it well-positioned to keep expanding its 1,269-property portfolio.
Read more: morningstar.com
Image credit: valeehill
