Orion Properties Inc. has agreed to extend its $355 million commercial mortgage-backed securities loan that's tied to 19 properties.
The debt, originally slated to mature in February 2027, will now run until at least August 2030, with two additional options to extend for a total of 18 months. The fixed interest rate will stay at 4.971 percent.
Additionally, Orion announced a new revolving credit facility worth $215 million for 28 properties, which replaces the existing $350 million one. The maturity date on the new revolver will be February 18, 2029, with the company reporting an outstanding balance of $113 million as of February 19. Also, Orion said that the interest rate on its borrowings has been cut by 50 basis points to SOFR plus 2.75 percent.
The Phoenix-based firm said that the moves keep its liquidity healthy, which now totals about $119.9 million.
"The successful execution of our new revolving credit facility and the extension of the CMBS loan materially enhances our capital structure and eliminates near-term maturity risk for Orion," Paul McDowell, chief executive officer and president of Orion, said in a statement.
"The new lower interest rate spread on our revolver and the extension of the CMBS loan at a sub 5% fixed rate along with accompanying principal amortization will serve to reduce our previously expected interest rate expense in [the] coming periods. With these debt maturities extended and our access to credit preserved and aligned with our business plan, we are well positioned to continue executing on our strategy and driving a more stable and growing earnings profile."
The lenders on the new revolver are JPMorgan Chase Bank, TD Bank, N.A., MidFirst Bank and Wells Fargo Bank. Moreover, Wells Fargo Bank, National Association will continue serving as the administrative agent on the new $215 million facility.
Orion wholly owns 63 properties, with another six operated through joint ventures. It operates in major states, including Texas, California and New York. The firm's portfolio includes traditional office assets, medical office, industrial, flex/laboratory and research & development, as well as government properties.
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