FrontView REIT, Inc. Debt Disclosure
6. DEBT, NET
|
|
As of December 31, 2025 |
|
|||||||
(in thousands, except interest rate) |
|
Note |
|
Maturity |
|
Interest Rate |
|
|
|
|
Revolving Credit Facility |
|
(a) |
|
3-Oct-2027 |
|
SOFR + 1.15% * |
|
$ |
115,500 |
|
Term Loan |
|
(b) |
|
3-Oct-2027 |
|
SOFR + 1.15% * |
|
|
200,000 |
|
Unamortized financing transaction costs, Term Loan |
|
|
|
|
|
|
|
|
(1,249 |
) |
|
|
|
|
|
|
|
|
$ |
314,251 |
|
* The approximate SOFR rate at December 31, 2025 was 3.71%.
|
|
As of December 31, 2024 |
|
|||||||
(in thousands, except interest rate) |
|
Note |
|
Maturity |
|
Interest Rate |
|
|
|
|
Revolving Credit Facility |
|
(a) |
|
3-Oct-2027 |
|
Adjusted SOFR + 1.20% ** |
|
$ |
68,500 |
|
Term Loan |
|
(b) |
|
3-Oct-2027 |
|
Adjusted SOFR + 1.20% ** |
|
|
200,000 |
|
Unamortized financing transaction costs, Term Loan |
|
|
|
|
|
|
|
|
(1,962 |
) |
|
|
|
|
|
|
|
|
$ |
266,538 |
|
** The approximate SOFR rate at December 31, 2024 was 4.37%, plus a 10 basis point adjustment (“Adjusted Term SOFR”).
As of December 31, 2025 and 2024, the weighted average interest rate was 4.87% and 5.65%, respectively.
The aggregate principal repayment of the Company’s debt, excluding the unamortized financing transaction costs of $1.2 million due in each of the years under the remaining term, are as follows:
(in thousands) |
|
|
|
|
|
|
|
December 31, 2025 |
|
|
2026 |
|
$ |
— |
|
||||||
2027 |
|
|
315,500 |
|
||||||
(a) Revolving Credit Facility
On October 3, 2024, the Company entered into a credit facility agreement with JPMorgan Chase Bank, N.A., which provides for an unsecured revolving line of credit of $250.0 million, including $20.0 million available for issuance of letters of credit (the “Revolving Credit Facility”). The Revolving Credit Facility has a three-year term expiring on October 3, 2027, with two 12-month extensions, subject to certain conditions including payment of 0.125% fee on the aggregate outstanding amount of the revolving commitments. Borrowings under the Revolving Credit Facility bear interest at floating rates based on Adjusted SOFR plus an applicable margin based on the Company's leverage ratio ranging between 1.20% and 1.75% per annum. On September 16, 2025, the Company amended the Revolving Credit Facility to remove the 10 bps credit spread adjustment applicable to Adjusted SOFR. On October 24, 2025, the Company amended the Revolving Credit Facility to adjust the applicable margin based on the Company's leverage ratio. As of December 31, 2025 and 2024, the applicable margin was 1.15% and 1.20%, respectively. The Revolving Credit Facility contains a commitment fee of 0.15% per annum if average daily usage in such quarter is over 50% of total revolving commitments. The commitment fee is payable quarterly in arrears on the first day of each calendar quarter and is included in interest expense on the accompanying consolidated statements of operations and comprehensive loss.
(b) Term Loan
On October 3, 2024, the Company entered into a credit facility agreement with JPMorgan Chase Bank N.A. as administrative agent that provided commitments for an unsecured term loan, allowing borrowings of up to $200.0 million (the “Term Loan”). The Term Loan is available to be drawn until October 2025 and has an initial maturity of October 3, 2027, with two 12-month extensions, subject to certain conditions including payment of a 0.125% fee on the aggregate outstanding principal amount of the Term Loan. The Term Loan bears interest at floating rates based on Adjusted SOFR plus an applicable margin based on the Company's leverage ratio ranging between 1.20% and 1.75% per annum. On September 16, 2025, the Company amended the Term Loan to remove the 10 bps credit spread adjustment applicable to Adjusted SOFR. On October 24, 2025, the Company amended the Term Loan to adjust the applicable margin based on the Company's leverage ratio. As of December 31, 2025 and 2024, the applicable margin was 1.15% and 1.20%, respectively.
Debt Covenants
The Company is subject to various financial and operational covenants and financial reporting requirements pursuant to its Revolving Credit Facility and Term Loan agreements. These covenants require the Company to maintain certain financial ratios. As of December 31, 2025 and 2024, the Company believes it was in compliance with all of its loan covenants. If a default or event of default exists, either through default on payments or breach of covenants, we may be restricted from paying dividends to our stockholders in excess of dividends required to maintain our REIT qualification.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Mar 20, 2025 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.