Invitation Homes Announces New $725 Million Sustainability-Linked Seven-Year Term Loan

DALLAS--(BUSINESS WIRE)-- Invitation Homes Inc. (INVH) (“Invitation Homes” or the “Company”) announced today that it has entered into a new $725 million seven-year unsecured term loan maturing in June 2029.

The sustainability-linked term loan bears interest at rates based on the Company’s senior unsecured credit rating, which equated to an interest rate of Adjusted Term SOFR plus 125 basis points at the time of closing based on the Company’s current credit ratings. Pricing of the term loan can further improve if the Company meets certain ESG performance targets as determined via an independent third-party evaluation, similar to its existing five-year unsecured credit facility.

The new seven-year delayed draw term loan allows the Company to elect to receive a portion of the proceeds at closing, with the opportunity to receive the remaining proceeds in up to three additional draws over a six month period. The Company received proceeds of $150 million in its initial draw at closing, and used these initial proceeds, along with cash on hand, as part of a series of transactions to fully repay its IH 2018-2 securitization. The repayment of IH 2018-2 increased the Company’s unencumbered pool to approximately 78 percent of its wholly-owned properties.

“We’re pleased to have received such a strong commitment from established and new banking partners at attractive rates,” said Ernie Freedman, the Company’s Chief Financial Officer. “We believe the new term loan further strengthens our capital structure and offers us additional flexibility to effectively extend our debt maturities and fund other corporate needs on favorable terms.”

The loan was funded through a group of banks led by Capital One, National Association, as Administrative Agent. Capital One, National Association, The Huntington National Bank, KeyBanc Capital Markets, Inc., M&T Bank, PNC Capital Markets LLC, Regions Capital Markets, and U.S. Bank National Association acted as Joint Lead Arrangers and Joint Bookrunners. BMO Capital Markets Corp. and Raymond James Bank acted as Passive Joint Lead Arrangers.

About Invitation Homes (INVH)

Invitation Homes (INVH) is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The Company's mission, "Together with you, we make a house a home," reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which include, but are not limited to, statements related to the Company's expectations regarding the performance of the Company's business, its financial results, its liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks inherent to the single-family rental industry and the Company's business model, macroeconomic factors beyond the Company's control, competition in identifying and acquiring properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association fees, and insurance costs, the Company's dependence on third parties for key services, risks related to the evaluation of properties, poor resident selection and defaults and non-renewals by the Company's residents, performance of the Company's information technology systems, risks related to the Company's indebtedness, and risks related to the potential negative impact of the ongoing COVID-19 pandemic and geopolitical events on the Company’s financial condition, results of operations, cash flows, business, associates, and residents. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The Company believes these factors include, but are not limited to, those described under Part I. Item 1A. “Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the Securities and Exchange Commission (the "SEC"), as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company's other periodic filings. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220622005289/en/

Source: Invitation Homes Inc. (INVH)