Agree Realty Reports $35M Unsecured Term Loan
Agree Realty Corporation (NYSE: ADC) today announced the closing of a new $35 million unsecured term loan. The new seven year unsecured financing matures September 29, 2020. The interest rate will be LIBOR plus 165 to 225 basis points. The Company also entered into an interest rate swap to fix LIBOR at 2.20% until maturity. Based on the Company's current leverage ratio, it anticipates the margin will be 165 basis points over LIBOR, for an initial all-in interest rate of 3.85% at closing including the impact of the interest rate swap. The term loan also includes a $35 million accordion feature to increase capacity to $70 million, subject to customary terms and conditions. The loan is prepayable without penalty after three years. The proceeds from this financing will be applied to amounts outstanding under the Company's unsecured revolving credit facility.
PNC Bank, National Association will act as Administrative Agent. PNC Capital Markets LLC will act as Sole Lead Arranger and Sole Bookrunner, and BMO Capital Markets will act as Syndication Agent. Also participating are Bank of Montreal, Chicago Branch and SunTrust Bank.
"We are extremely pleased to complete the closing of this financing. This transaction
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