Monmouth Real Estate Investment Corporation entered into a Term Loan Agreement, dated as of December 15, 2021, with Monmouth, as borrower, the guarantors from time to time party thereto and JPMorgan Chase Bank, N.A. as administrative agent and Sole Lead Arranger and Sole Book Runner (“JPMorgan”). The Term Loan Agreement provides for a $175,000,000 unsecured delayed-draw term loan facility that, based on the Company’s current leverage, bears interest at a spread of 140 basis points over LIBOR. The loans issued under the Term Loan Agreement will, at the Company’s election, either bear interest at (i) LIBOR plus 130 basis points to 200 basis points, depending on the Company’s leverage ratio, or (ii) Base Rate plus 30 basis points to 100 basis points, depending on the Company’s leverage ratio. In addition, the Company incurs a commitment fee at a rate per annum equal to 0.20% of the unused portion of the total amount committed under the Term Loan Agreement, which fee will be payable quarterly based on outstanding borrowings and the unused portion of the total amount committed under the Term Loan Agreement during the applicable quarter. The Term Loan Agreement contains customary negative covenants similar to the Company’s current Amended and Restated Credit Agreement, dated as of November 15, 2019 (the “A&R Credit Agreement”), including, but not limited to, restrictions on the incurrence of liens, the sale of assets and other fundamental corporate changes. Moreover, the Term Loan Agreement also requires the Company to satisfy various affirmative and financial covenants, including, without limitation, maintenance of REIT status, a maximum leverage ratio, a minimum debt service coverage ratio, an unsecured leverage ratio, and a minimum tangible net worth threshold. The Term Loan Agreement includes the same events of default and remedies upon an event of default as the A&R Credit Agreement, including acceleration of the amounts due under the Term Loan Agreement.