BMO leads $200m credit facility for New Jersey REIT

BMO Capital Markets, the investment banking arm of Bank of Montreal, has led a $200m syndicated financing for New Jersey-based Monmouth Real Estate Investment Corporation (MNR), a real estate investment trust.

The new unsecured revolving credit facility replaces an existing $60m line of credit.

The facility is led by BMO as sole lead arranger and sole book runner, Bank of Montreal as administrative agent and includes JPMorgan Chase Bank, and RBC Capital Markets (RBC) as co-syndication agents.

Up to $130m in unsecured revolving credit is available immediately, in addition to a $70m accordion feature. The four-year credit facility comes with a one-year extension option.

“This new facility, which will help fund our growing acquisition pipeline, enhances our financial flexibility and is a testament to the strength of our balance sheet and our high-quality tenant base,” said Kevin Miller, CFO at MNR, adding that the facility offers significant liquidity for growing the firm’s property portfolio. “Our new facility is at a lower cost than our prior one.”

Monmouth Real Estate Investment, founded in 1968, is one of the oldest public equity REITs in the U.S., and specializes in net-leased industrial properties. The company’s portfolio consists of 91 properties located in 28 states totaling about 14m rentable sq ft.