Forward Starting Swaps to Fix Interest Rate at
4.52%
BLOOMFIELD HILLS, Mich., June 28,
2023 /PRNewswire/ -- Agree Realty Corporation
(NYSE: ADC) (the "Company") today announced it has received
commitments for an unsecured $350
million 5.5-year term loan (the "Term Loan"). The Term Loan
includes an accordion option that allows the Company to request
additional lender commitments up to a total of $500 million. The Term Loan is anticipated to
close in July 2023, with a 12-month
delayed draw feature, and is expected to mature in January 2029. Closing of the Term Loan is subject
to customary closing conditions.
In anticipation of the new Term Loan, the Company entered into
$350 million of forward starting
swaps to fix SOFR over the 5.5-year period. Including the impact of
the forward starting swaps, the Company anticipates the interest
rate on the Term Loan will be fixed at 4.52% based on its current
credit rating.
"We are very pleased and appreciative of the continued support
of our bank group," said Peter
Coughenour, Chief Financial Officer. "This market-leading
financing further bolsters our best-in-class balance sheet and
positions our Company for continued growth. The Term Loan fits well
into our debt maturity schedule, and upon closing we will have no
material debt maturities until 2028."
PNC Capital Markets LLC, Citibank, N.A., Wells Fargo Securities,
LLC, and J.P. Morgan are serving as Joint Lead Arrangers for the
Term Loan. PNC Bank, National Association is serving as the
Administrative Agent.
About Agree Realty Corporation
Agree Realty Corporation is a publicly traded real estate
investment trust that is RETHINKING RETAIL
through the acquisition and development of properties net leased to
industry-leading, omni-channel retail tenants. As of March 31, 2023, the Company owned and operated a
portfolio of 1,908 properties, located in all 48 continental states
and containing approximately 40.1 million square feet of gross
leasable area. The Company's common stock is listed on the New York
Stock Exchange under the symbol "ADC". For additional
information on the Company and RETHINKING
RETAIL, please visit www.agreerealty.com.
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SOURCE Agree Realty Corporation