After Diversifying its Real Estate Portfolio, Agree Realty Rises Above the Grave of Borders Books

With a new credit facility on the way, Agree Realty Corp.

is having a terrific year.

Borders once accounted for the vast majority of the firm's leases. But after parting ways with the ailing book store, and after acquiring

, Agree Realty is thriving at a time when most others are struggling. Agree Realty, whose retail tenants include (but are not limited to) Best Buy

, AT&T

, CVS Pharmacy

, and Walgreens

, has announced the

. The new, three-year facility will mature on October 26, 2014. The company has two one-year options to extend its maturity (at its discretion) until October 26, 2016. Agree Realty's borrowings under the new facility are priced at LIBOR plus 175 to 260 basis points. Based on the company's current leverage ratio, the company anticipates the margin will be 185 over LIBOR. Further, the new facility includes a $50 million accordion feature that would allow Agree Realty to increase capacity to $135 million to accommodate its acquisition and development platforms. “We are extremely pleased to complete the closing of our revolving credit facility,” said Joey Agree, President and Chief Operating Officer. “This new and expanded arrangement will provide the Company with increased capacity to fund our growing acquisitions and development activities. We appreciate the strong support we have received from our bank group and look forward to continuing to source high-quality net lease opportunities for our shareholders.” Bank of America

is slated to serve as the Administrative Agent, with Merrill Lynch, Pierce, Fenner & Smith Inc. and PNC Capital Markets LLC on board as Joint Lead Arrangers and Joint Book Managers. Bank of Montreal and U.S. Bank National Association are also participating.