Orion Properties Inc. (NYSE: ONL) shares made slight gains on announcing it had entered into a new $215-million senior secured revolving credit facility and extended its existing $355-million commercial mortgage-backed securities loan. These transactions meaningfully extend Orion’s debt maturity profile and maintain the Company’s healthy liquidity position.
CEO Paul McDowell said, “Proactively addressing our near-term maturities has been a key priority and we appreciate our lenders confidence in our business strategy. 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. 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 coming periods.”
The new $215-million revolving credit facility, entered into with four of the banks in the existing lender group, is secured by a pool of 28 properties and is scheduled to mature on February 18, 2029, inclusive of two six-month extension options. This new credit facility refinances and replaces the existing $350 million revolving credit facility that was due to mature on May 12, 2026, reduces the interest rate margin on our borrowings by 50-basis points, to SOFR plus 2.75%, and eliminates the 10-basis point SOFR adjustment. As of February 19, 2026, the Company had $113 million outstanding on the new revolving credit facility.
ONL shares gained two cents to $2.56.
Related Stories
