Tanger increases term loan to $325 million, moves maturity to 2027

Chicago, Oct. 17 – Tanger Factory Outlet Centers, Inc. majority-owned subsidiary Tanger Properties LP amended and restated its term loan agreement on Oct. 12 to increase borrowings and extend the maturity date, according to an 8-K filing with the Securities and Exchange Commission.

The term loan is now $325 million, increased from $300 million.

The loan matures on Jan. 13, 2027, extended from April 22, 2024. There is also the possibility of a one-year extension.

Pricing was reduced in the amendment, now SOFR plus 120 basis points from Libor plus 125 bps, based on the company’s current credit rating. The full seven-level pricing grid is 70 bps to 160 bps. The initial rate is at tier 6.

Additionally, the amendment also incorporates a sustainability metric, reducing the applicable grid-based interest rate spread by 1 bp annually, subject to meeting certain thresholds.

Wells Fargo Bank, NA is the administrative agent.

Wells Fargo Securities, LLC, BofA Securities, Inc., Regions Capital Markets, a division of Regions Bank, TD Bank, NA, Truist Securities, Inc. and U.S. Bank NA are the joint lead arrangers.

Bank of America, NA, Regions Bank, TD Bank, NA and U.S. Bank NA are the co-syndication agents.

Wells Fargo Securities, LLC was the sole bookrunner.

Proceeds will be used to finance the acquisition of real properties, to finance the development of improvements to real properties, to refinance and/or retire existing debt and for working capital and other general corporate purposes.

Tanger Factory Outlet is an operator of open-air outlet centers based in Greensboro, N.C.

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