Business Context and Reporting Period
Company: Broadstone Net Lease, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: July 1, 2019
Event: Entry into a Material Definitive Agreement (Second Amendment to Revolving Credit and Term Loan Agreement).
Key Financial Metrics
This filing does not report specific revenue, profit, cash flow, or margin figures. It focuses on amendments to debt covenants and definitions within the existing Credit Agreement dated June 23, 2017 (as previously amended).
Material Changes Versus Prior Period
On July 1, 2019, the Company entered into a Second Amendment to its Credit Agreement with Manufacturers and Traders Trust Company (M&T) and other lenders. The material changes include:
- Applicable Margin: The definition of "Applicable Margin" was amended and restated.
- Debt-to-Market Value Covenant: The Company is now restricted from permitting the ratio of Total Outstanding Indebtedness to Total Market Value to exceed 0.60 to 1.00, subject to permitted exceptions.
- Debt-to-Property Value Covenant: The Company is now restricted from permitting the ratio of Total Unsecured Indebtedness to Total Unencumbered Eligible Property Value to exceed 0.60 to 1.00, subject to permitted exceptions.
Guidance, Outlook, and Risks
Management Commentary: The filing states that except for the expressly amended terms, the original Credit Agreement remains in full force and effect. No forward-looking guidance or outlook regarding future financial performance is provided in this document.
Risks and Contingencies: The filing highlights new financial covenants that limit the Company's leverage ratios. Failure to maintain these ratios could constitute a default under the Credit Agreement, subject to exceptions.
Important Facts for Investor Verification
- Verify the specific numerical changes to the "Applicable Margin" definition in the full text of Exhibit 10.1.
- Confirm the Company's current Total Outstanding Indebtedness and Total Market Value to assess compliance with the new 0.60 to 1.00 leverage ratio.
- Review the definitions of "Total Unsecured Indebtedness" and "Total Unencumbered Eligible Property Value" to understand the scope of the second new covenant.
- Check for any "permitted exceptions" to the new covenants that may allow temporary non-compliance.