Postal Realty Trust, Inc. 8-K

What Happened
On July 2, 2026 Postal Realty Trust, Inc. (the Company) and its operating partnership, Postal Realty LP (the Operating Partnership), entered into a Second Amended and Restated Credit Agreement with Truist Bank as administrative agent and participating lenders. The agreement replaces the prior credit agreement and provides a $275 million senior unsecured revolving credit facility and $340 million of senior unsecured term loans (totaling $615 million in initial commitments). A $35 million portion of the 2031 term loan was newly advanced at closing. The Operating Partnership says future borrowings will be used for general corporate and working capital purposes, which may include debt repayment, real estate acquisitions and capital expenditures.

Key Details

• Closing date: July 2, 2026; administrative agent: Truist Bank; borrower: Postal Realty LP; guarantor: Postal Realty Trust, Inc. and certain indirect subsidiaries.
• Facility sizes: $275M revolving facility; $340M term loans made up of a $90M (2028) term loan, $100M (2029) term loan, and $150M (2031) term loan (including $35M new advance).
• Maturities & options: Revolver matures Nov 15, 2030; 2028 term loan matures Feb 11, 2028; 2029 term loan matures Feb 11, 2029; 2031 term loan matures Jan 15, 2031. Revolver and 2031 term loan each may be extended one 12‑month period at the Operating Partnership’s discretion.
• Pricing & fees: Interest is either base rate + margin (0.10%–0.55% depending on facility) or SOFR + margin (1.10%–1.55%), with SOFR floored at 0.00%. Revolver unused fee of 0.20% if usage ≤50% (0.15% if >50%). Margin can decrease by 0.02% if certain sustainability targets are met.
• Flexibility to expand: Subject to conditions and covenants, the Operating Partnership may seek to increase commitments by up to $175M on the revolver and up to $160M on the term loan side.
• Covenants & risks: The agreement contains customary covenants and quarterly financial maintenance tests (e.g., fixed charge coverage, total leverage, tangible net worth, secured/unsecured leverage and unsecured debt service coverage). Events of default could accelerate repayment and terminate the facilities.

Why It Matters
This agreement establishes Postal Realty’s near‑term liquidity and borrowing flexibility with a sizable revolver and multi‑year term loans, which can support refinancing, acquisitions and capital needs. The new structure also embeds financial covenants that the company must meet each quarter; failure to comply could trigger default remedies. Investors should monitor the company’s leverage and covenant compliance, upcoming 2028–2029 term‑loan maturities, and any use of the expanded borrowing capacity. A small sustainability pricing incentive may modestly lower borrowing costs if targets are met.