Agree Realty unit draws $54 million under revolving credit facility

By Jennifer Chiou

New York, Nov. 1 - Agree Realty Corp. majority-owned operating partnership Agree LP used $54 million of borrowings under its new $85 million revolving credit facility due Oct. 26, 2014 to repay its prior credit facility and line of credit, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the revolver has a $50 million accordion feature, and the company has two one-year options to extend the maturity.

The interest rate is Libor plus 175 basis points to 260 bps. Based on its current leverage ratio, the company expects the initial margin to be 185 bps.

Bank of America, NA is the administrative agent. Bank of America Merrill Lynch and PNC Capital Markets LLC are the joint lead arrangers and bookrunners. Also participating are Bank of Montreal and U.S. Bank NA.

Agree Realty is a real estate investment trust focused on the acquisition and development of single-tenant properties net leased to retailers. It is based in Farmington Hills, Mich.

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