VineBrook Secures $325M Loan
The newly issued interest-only loan carries a 5.44% rate and matures in 2030 with early repayment options.
October 24, 2025
VineBrook Homes Trust Strengthens Balance Sheet with $325 Million Real Estate Loan
On October 17, 2025, VineBrook Homes Trust locked in a $325 million loan that simplifies its debt structure and expands financial flexibility. The funding was secured through indirect subsidiaries VB Two, LLC and VB Three, LLC, with capital provided by Massachusetts Mutual Life Insurance Company, MassMutual Ascend Life Insurance Company, and Martello Re Limited.
This isn’t a partial draw. The loan was fully funded upfront at a 3% original issue discount. It’s interest-only, with a fixed 5.44% annual rate and a maturity date of October 17, 2030. VineBrook moved quickly—allocating approximately $89.5 million to retire a revolving credit facility with JPMorgan Chase and another $98.3 million to extinguish a 2021 note issued to Metropolitan Life Insurance.
The structure is straightforward. The loan is secured by real estate held by the borrowing entities, plus an equity pledge by VB Two Equity, LLC in both VB Two and VB Three.
There’s also built-in flexibility. Starting October 17, 2028, VineBrook can prepay without penalty. Before then, prepayment triggers a premium calculated from the present value of scheduled payments compared to the prepaid principal.
Key Loan Terms
- Interest Rate: 5.44% annually
- Maturity Date: October 17, 2030
- Prepayment: Allowed without penalty after October 17, 2028
- Collateral: Real estate holdings and equity pledge
Terms in the agreement include financial covenants—minimum net assets, coverage ratios, and reserve requirements—alongside customary clauses on representations, warranties, and default triggers.
This transaction gives VineBrook a more stable capital base and lowers the complexity of its existing obligations. By consolidating previous debts under a single, long-term facility, the company can keep its focus on operating and growing its portfolio of single-family rental homes. It’s a deliberate move to stay nimble in a market where long-term cost predictability matters.
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