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Agree Realty obtains new $150 million revolver, $65 million term loan
By Toni Weeks
San Luis Obispo, Calif., July 21 – Agree Realty Corp. announced that it recently negotiated a new senior revolving credit and term loan agreement.
The facility is comprised of a $150 million revolving credit facility due July 21, 2018 with a one-year extension option and a $65 million term loan facility due July 21, 2021.
The revolver, which replaces the company’s existing $85 million revolver, bears interest at Libor plus 135 basis points. It may be expanded to $250 million via an accordion feature.
The term loan facility carries an initial coupon of Libor plus 165 bps. 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.
In addition to the new revolver and term loan, the credit agreement also encompasses changes made to the terms and conditions of Agree Realty’s existing $35 million term loan facility. The maturity date remains Sept. 29, 2020, and the current all-in interest rate remains 3.85%.
“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,” chief financial officer Brian Dickman said in a press release.
PNC Capital Markets LLC and Citigroup Global Markets Inc. were the joint lead arrangers and joint book managers of the new revolver.
PNC and SunTrust Robinson Humphrey, Inc. acted as joint lead arrangers and joint bookrunners for the new term loan.
For the existing term loan, PNC was the lead arranger and the bookrunner.
Agree is a real estate investment trust located in Farmington Hills, Mich.
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