Shares of Agree Realty Quiet Following News of $250M Senior Unsecured Credit Facilities
Corporation (NYSE: ADC) today announced that it recently entered into a $250
million senior unsecured Revolving Credit and Term Loan Agreement (the
"Agreement") covering three senior unsecured credit facilities:
o A $150 million unsecured revolving credit facility (the "Revolver") due
July 21, 2018 with an additional one-year extension option at the
Company's election. Borrowings under the Revolver will initially be
priced at LIBOR plus 135 basis points. The Revolver replaces the
Company's existing $85 million revolving credit facility and can be
expanded to $250 million though an accordion feature.
o A $65 million seven-year unsecured term loan facility (the "New Term
Loan") due July 21, 2021. Borrowings under the New Term Loan will
initially be priced at LIBOR plus 165 basis points. The Company has
entered into an interest rate swap to fix LIBOR at 2.09% until maturity,
implying an all-in interest rate of 3.74% at closing.
o Additionally, conforming changes were made to certain terms and conditions
of the Company's existing $35 million term loan facility (the "Existing
Term Loan") as part of the Agreement. The maturity date remains September
29, 2020 and the current all-in interest rate remains 3.85%.
"We are extremely pleased to announce this financing," said Joey Agree, Chief
Executive Officer of Agree Realty. "We greatly appreciate the strong support
of the many leading financial institutions that continue to play an integral
part in the continued evolution of our Company. We remain focused on
strategically deploying capital into high-quality net lease assets through our
three external growth platforms."
"This financing further solidifies our robust balance sheet," added Brian
Dickman, Chief Financial Officer of Agree Realty. "The terms of the Agreement
reduce the Company's borrowing costs and extend applicable maturities, while
providing increased borrowing capacity and enhanced flexibility as we continue
our growth and diversification efforts."
For the Revolver, PNC Capital Markets LLC and Citigroup Global Markets Inc.
acted as Joint Lead Arrangers and Joint Book Managers; Citigroup Global
Markets Inc. acted as Syndication Agent; Royal Bank of Canada and U.S. Bank
National Association acted as Documentation Agents; and Bank of Montreal
(Chicago Branch), Capital One, N.A., and SunTrust Bank were participating
For the New Term Loan, PNC Capital Markets LLC and SunTrust Robinson Humphrey,
Inc. acted as Joint Lead Arrangers and Joint Book Managers; SunTrust Bank
acted as Syndication Agent; Capital One, N.A. acted as Documentation Agent;
and Raymond James Bank, N.A. was a participating lender.
For the Existing Term Loan, PNC Capital Markets LLC acted as Sole Lead
Arranger and Sole Book Manager; BMO Capital Markets acted as Syndication
Agent; and SunTrust Bank was a participating lender.
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