Monday, December 19, 2016

Swap Settlement Reduces National Retail Properties Inc. 2026 Notes’ Effective Interest Rate to 3.280%

Kevin B. Habicht
ORLANDO, FL– National Retail Properties, Inc. (NYSE: NNN) (the “Company”) reported it has closed on its previously announced issuance of $350,000,000 of 3.60% senior unsecured notes due 2026 (“2026 Notes”). 

The 2026 Notes were offered at 98.897% of the principal amount with a yield to maturity of 3.733%.
In June 2016, the Company entered into two forward starting swaps with a total notional amount of $180,000,000 to partially hedge the risk of changes in interest-related cash outflows associated with this issuance of long-term debt.

On December 7, 2016, the Company received $13,352,000 in connection with the termination and settlement of these swaps. These swap proceeds will be amortized as a reduction to interest expense using the effective interest method over the next 10 years, thereby reducing the effective yield of the 2026 Notes to 3.280%.

National Retail Properties, Inc. invests primarily in high-quality retail properties subject
generally to long-term, net leases. As of September 30, 2016, the Company owned 2,485 properties in 48 states with an aggregate gross leasable area of approximately 26.6 million feet and with a weighted average remaining lease term of 11.5 years.

For a complete copy of the company’s news release, please contact:

Kevin B. Habicht
Chief Financial Officer

(407) 265-7348

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