June 10, 2019

American Finance Trust Inc (AFIN) Losses?

reit-investor-alert

American Finance Trust, Inc. (AFIN) announced last month that it has issued $242 million of long-term fixed-rate notes designated as AFIN's Net-Lease Mortgage Notes, Series 2019-1. According to Yahoo Finance, the net proceeds from the sale of the notes will be used to primarily refinance assets currently financed under AFIN's revolving unsecured corporate credit facility. Is the available credit support sufficient to withstand the assumed losses?
These notes were issued in two classes in a private placement to institutional debt investors.  The $121 million of seven-year Class A-1 notes were rated AAA by Standard & Poor's Rating Services at an interest rate of 3.8% and $121 million of 10-year Class A-2 notes were rated A by Standard & Poor's at an interest rate of 4.5%. This weighted average interest rate of both classes of notes is 4.2%. The debt issuance provides AFIN with some flexibility and extends the weighted average life of its indebtedness from 3.8 to 4.2 years.

The notes are not registered under the Securities Act of 1933, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.  The notes may only be offered and sold in the United States in accordance with Rule 144A under the Securities Act.

American Finance Trust, Inc. (AFIN) is a publicly traded real estate investment trust listed on the Nasdaq.  AFIN acquires and manages a diversified portfolio of primarily service-oriented and traditional retail and distribution related commercial real estate properties in the U.S. AFIN debuted on July 20, 2018 at $13.15, rose to a $16.80 high, and closed at $15.00. An estimated 600,000 shares had been traded on its opening day. Approximately 50% of AFIN’s common stock is listed on Nasdaq as Class A shares. The company reported that the remainder of its common stock is due to be converted from Class B shares to Class A shares, with all shares listed prior to January 15, 2019.
Prior to its Nasdaq debut, American Finance Trust (AFIN) was designed as a non-traded REIT. Shares had been sold by brokers to investors at $25.00 apiece. An estimated $1,600,000,000.00 had been raised through the company’s offering during its non-REIT phase. American Finance Trust reported in its June 2018 Listing Presentation that its estimated-per-share net asset value was $23.56 as of December 31, 2017. The AFIN shares closed on August 1, 2018 at $14.95 which was over a thirty-six percent less than the estimated NAV. Today AFIN is trading at $10.20.
If you’ve suffered losses due to your broker/dealer's recommendations in AFIN, contact Soreide Law Group at (888) 760-6552 for a free consultation with a securities lawyer regarding the possible recovery of your financial losses. We have recovered millions of dollars for investors who have suffered losses due to broker and brokerage firm misconduct. We represent clients on a contingency fee basis and advance all costs.

Recent Posts

March 28, 2024
Al Lovelace In Investor Disputes Over Annuity Misrepresentation

Soreide Law Group is investigating potential investor claims of sales practice violations possibly committed by securities broker Al Stephen Lovelace [CRD: 2393766, Rutherfordton, North Carolina], given the disclosures on FINRA BrokerCheck. Evidently, Lovelace has worked for Equitable Advisors LLC since December 27, 2016, and worked previously at AXA Advisors LLC from October 2, 2008, to […]

March 28, 2024
KAREN CHUNG of WESTERN INTERNATIONAL

Soreide Law Group is conducting an investigation into WESTERN INTERNATIONAL SECURITIES, INC. of Pasadena, California, financial advisor, KAREN TRAN CHUNG (KAREN CHUNG). According to FINRA’s  BrokerCheck, KAREN CHUNG, has been in the securities industry for 20 years and has been listed with 4 firms.  She is currently listed with, WESTERN INTERNATIONAL SECURITIES, INC., 70 S. […]

March 26, 2024
Stifel Fined $400K by FINRA

According to a recent article in Wealth Management, Stifel will pay over $400,000 to settle FINRA disciplinary charges that the firm allegedly did not properly supervise one of their registered representatives who misappropriated over $100,000 from an elderly client. Stifel agreed to the penalties without admitting or denying FINRA’s findings. In addition to a $400,000 penalty, Stifel […]

Contact us Nationwide USA
2401 E. Atlantic Blvd., Suite 305, Pompano Beach, FL 33062
Helping clients recover money across the USA
search
Copyright © 2022 Soreide Law Group, PLLC  |  All Rights Reserved
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram