On May 11, 2022, Postal Realty Trust, Inc. amended its credit facilities to, among other things, add a new $75 million senior unsecured delayed draw term loan facility that matures in February 2028, increase the accordion feature under the credit facilities for term loans to $75 million, replace LIBOR with SOFR as the benchmark interest rate and allow for a decrease in the applicable margin by 0.02% if the Company achieves certain sustainability targets. The amended credit facilities carry an interest rate of, (i) in the case of the revolving credit facility, Adjusted Term SOFR (as defined below) plus a margin ranging from 1.5% to 2.0% per annum, or (ii) in the case of the term loans, Adjusted Term SOFR plus a margin ranging from 1.45% to 1.95% per annum, in each case based on a consolidated leverage ratio. The "Adjusted Term SOFR" option is SOFR plus a term SOFR adjustment of 0.10%, subject to a 0% floor.

The transition to SOFR did not materially impact the interest rate applied to the Company's borrowings. Upon closing of the amendment, $50 million was funded under the delayed draw term loan facility to repay a portion of the outstanding amount under the revolving credit facility. The Company also swapped $50 million of the credit facilities through February 2028 by fixing the SOFR component of the interest rate.