Slate Grocery REIT, an owner and operator of U.S. grocery-anchored real estate, entered into a new credit facility agreement on Oct. 21, 2024 for an aggregate principal amount of up to $500 million, comprising a $275 million revolving credit facility and a $225 million term loan facility, maturing in January 2028. The facility was completed with a syndicate of both existing and new institutional lenders at interest rate spreads similar to the maturing debt facility.
“In today’s financing environment, our ability to refinance half a billion dollars of debt at such favorable economic terms reflects the strength and quality of our underlying real estate portfolio and the confidence our lenders have in the long-term growth and outlook of our business,” Joe Pleckaitis, chief financial officer of the REIT, said. “We strategically executed this refinancing to ensure we have ample liquidity available in order to maintain the strength of our operations over the coming years.”
The REIT is also in advanced stages with lenders to refinance another $138 million of upcoming debt maturities, which are expected to be completed during Q4/24. Subsequent to these refinancings, the REIT’s forecasted weighted average interest rate across its portfolio, coupled with the REIT’s interest rate swap contracts in-place, will be 4.8%, continuing to provide positive leverage and stability for the REIT.
