Agree Realty amended its revolving credit facility and term loan to increase its senior unsecured credit facility to $600 million.
The credit facility is comprised of a $500 million unsecured revolving credit facility and $65 million and $35 million unsecured term loans. The facility includes an accordion option that allows the company to request additional lender commitments up to a total of $1.1 billion. The facility will mature in January 2024 with options to extend the maturity date to January 2025, and the unsecured term loans will mature in January 2024.
“We are very appreciative of the continued support of our bank group, which we were pleased to expand with the completion of our new credit facility,” said Clay Thelen, chief financial officer of Agree Realty. “This financing further solidifies our investment-grade balance sheet, provides us ample capacity for future growth, and extends the maturity of our revolving facility.”
The revolving facility’s interest rate is based on a pricing grid with a range of 77.5 to 145 basis points over LIBOR, determined by the company’s credit rating. The margins for the revolving facility are subject to improvement based on the Company’s leverage ratio, provided its credit rating meets a certain threshold. Based on the company’s credit rating and leverage ratio at the time of closing, pricing on the revolving facility was 82.5 basis points over LIBOR.
The interest rate on the unsecured term loans is based on a pricing grid with a range of 85 to 165 basis points over LIBOR, determined by the company’s credit rating. The company will utilize existing interest rate swaps to fix LIBOR on the unsecured term loans at approximately 2.13%. Based on the company’s credit rating at the time of closing, the interest rate on the unsecured term loans was 3.13%.
PNC Capital Markets, Citigroup Global Markets and Wells Fargo Securities, served as joint lead arrangers and joint book managers for the revolving facility. PNC Bank served as the administrative agent and Citigroup Global Markets and Wells Fargo Securities served as co-syndication agents. PNC Bank, Citibank, Wells Fargo Bank, Capital One, Citizens Bank, Regions Bank, SunTrust Bank, U.S. Bank, JPMorgan Chase Bank, Mizuho Bank, Raymond James Bank and Stifel Bank & Trust served as participating lenders in the revolving facility.
PNC Capital Markets, Capital One, Regions Capital Markets, SunTrust Robinson Humphrey and U.S. Bank served as joint lead arrangers and joint book managers for the unsecured term loans. PNC Bank, served as the administrative agent, and Capital One, Regions Bank, SunTrust Bank and U.S. Bank served as co-syndication agents. PNC Bank, Capital One, Regions Bank, SunTrust Bank, U.S. Bank, Raymond James Bank, and Stifel Bank & Trust served as participating lenders in the unsecured term loans.
Agree Realty is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants.
