American Homes 4 Rent, a provider of single-family homes for rent, closed a $1.25 billion sustainability-linked revolving credit facility, amending its existing $800 million revolving credit facility. The amended revolving credit facility provides for expanded borrowing capacity, reflects a more favorable pricing grid and includes a sustainability component based upon third-party performance measures through which overall pricing can further improve if American Homes 4 Rent meets certain targets.

A total of 15 lenders participated in the facility, including Wells Fargo Bank as administrative agent and JPMorgan Chase Bank as syndication agent. Additional lenders included Bank of America, PNC Bank, Raymond James Bank, Bank of Montreal, Mizuho Bank, Morgan Stanley Bank, the Bank of Nova Scotia, U.S. Bank, Citibank, Regions Bank, City National Bank, Associated Bank and BBVA USA as sustainability agent. Wells Fargo Securities, JPMorgan Chase Bank and BofA Securities were the joint lead arrangers and joint bookrunners, and PNC Capital Markets and Raymond James Bank were joint lead arrangers.

“We are pleased to announce the closing of our upsized credit facility, which reflects our continued strategic focus on outsized external growth as well as dedication to sustainability and sound ESG principles,” Chris Lau, CFO of American Homes 4 Rent, said. “Our flexible balance sheet and access to investment grade capital continue to be a key differentiator for American Homes 4 Rent. We appreciate the strong support from our bank group and believe the closing of our upsized credit facility reflects their confidence in our future.”

The amended revolving credit facility has an initial maturity date in April 2025 and may be extended for up to one year through the exercise of two six-month extension options at the borrower’s option if certain conditions are met. As of April 2021, $80 million was outstanding under the existing revolving credit facility.

The interest rate on the amended revolving credit facility is at either LIBOR plus a margin ranging from 0.725% to 1.45% or a base rate (determined according to the greater of a prime rate, federal funds rate plus 0.5% or daily LIBOR rate plus 1%) plus a margin ranging from 0% to 0.45%. In each case, the actual margin is determined based on American Homes 4 Rent’s credit ratings in effect from time to time.