Orion Properties Inc. entered into a new $215 million senior secured revolving credit facility on February 19 2026. The facility, backed by a pool of 28 properties, is scheduled to mature on February 18 2029 and includes two six‑month extension options. The four lenders on the facility are Wells Fargo, JP Morgan Chase, TD Bank, and MidFirst Bank.
The company also amended its existing $355 million commercial mortgage‑backed securities (CMBS) loan, which was originally due in February 2027. The amendment extends the loan’s maturity by three and a half years to August 2030 and preserves a fixed interest rate of 4.971 %.
These financing moves directly address Orion’s debt‑maturity risk that prompted a going‑concern warning in November 2025. The warning stemmed from uncertainty about extending or refinancing the company’s $110 million revolving facility that matures in May 2026. By securing a longer‑term revolving facility and extending the CMBS loan, Orion eliminates the near‑term maturity risk and improves its liquidity cushion.
The new revolving facility provides approximately $119.9 million of liquidity as of February 19 2026. The borrowing cost on the facility has been reduced to SOFR + 2.75 %, a 50‑basis‑point improvement that eliminates the previous 10‑basis‑point SOFR adjustment. The lower cost of capital is expected to lower interest expense in the coming periods and support the company’s goal of improving its net debt to adjusted EBITDA ratio, which was guided at 6.7‑7.2× for 2025 after falling from 7.48× in Q1 2025 to 6.7× in Q3 2025.
Strategically, Orion is shifting its portfolio toward dedicated‑use assets (DUAs). As of Q1 2025, DUAs accounted for 31.8 % of the company’s annualized base rent, and the new financing provides the capital flexibility needed to accelerate that transition. The longer‑term debt structure also aligns with the company’s focus on stable, high‑renewal‑potential properties such as flex, laboratory, medical, and governmental sites.
CEO Paul McDowell said, "Proactively addressing our near‑term maturities has been a key priority and we appreciate our lenders confidence in our business strategy. The successful execution of our new revolving credit facility and the extension of the CMBS loan materially enhances our capital structure and eliminates near‑term maturity risk for Orion."
Prior to the financing, Orion reported a net loss of $69 million and core FFO of $11 million in Q3 2025. The company’s net debt to adjusted EBITDA ratio had been guided at 6.7‑7.2× for 2025, reflecting the impact of the debt‑maturity risk and the company’s efforts to improve financial flexibility.
The combination of a lower‑cost, longer‑term revolving facility and an extended CMBS loan strengthens Orion’s liquidity position, reduces near‑term refinancing risk, and supports the company’s strategic shift toward dedicated‑use assets, positioning it for sustainable growth in a changing real‑estate landscape.
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