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ORLANDO-A consortium of 12 banks has agreed to provide locally based Commercial Net Lease Realty with an amended $300-million credit facility designed to strengthen the REIT’s acquisition strategy in 2006, company officials say.

The new credit facility extends the existing facility to May 2009; reduces the facility’s interest rate to Libor plus 80 basis points; and increases the REIT’s borrowing capacity from $225 million. The new facility also provides for a competitive bid option for up to 50% of the facility amount.

“Increasing borrowing capacity and financial flexibility while reducing pricing and renewing this facility several months early is an important accomplishment for the company,” says CNLR executive vice president and chief financial officer Kevin B. Habicht.

Wachovia Securities Inc. acted as the sole lead arranger and book manager for the amended credit facility. Titled agents include Wachovia Bank as the administrative agent; AmSouth Bank and Wells Fargo Bank as the syndication agents; and Bank of America and SunTrust Bank as documentation agents. Other participating institutions include Comerica Inc., PNC Bank, Branch Banking and Trust Co., US Bank, Chevy Chase Bank, Citicorp NorthAmerica Inc. and Fifth Third Bank.

Commercial Net Lease Realty invests primarily in high-quality retail properties offered at long-term net leases with established tenant, such as Barnes & Noble, Best Buy, CVS, Office Max and federal agencies. As of Sept. 30, the company owned 464 investment properties in 41 states with a gross leasable area of about nine million sf. The properties are leased to 172 corporations in 60 industry classifications.

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