Agree Realty Announces $350 Million 5.5-Year Term Loan

Rhea-AI Summary

Agree Realty Corporation has received commitments for a $350 million term loan with an accordion option to request additional lender commitments up to $500 million. The loan is expected to close in July 2023 and mature in January 2029. The company has also entered into $350 million of forward starting swaps to fix the interest rate at 4.52% based on its current credit rating.

Positive

• Agree Realty Corporation has secured a $350 million term loan with the potential to increase to $500 million, strengthening its balance sheet and positioning the company for growth. The forward starting swaps will fix the interest rate at 4.52%, providing stability for the loan.

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• None.

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

FAQ

What is the size of the term loan secured by Agree Realty Corporation?

Agree Realty Corporation has secured a $350 million term loan with the potential to increase to $500 million.

What is the interest rate on the term loan?

The interest rate on the term loan is expected to be fixed at 4.52% based on the company's current credit rating.

Who are the lead arrangers for the term loan?

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.

When is the term loan expected to close and mature?

The term loan is expected to close in July 2023 and mature in January 2029.

What is the purpose of the term loan for Agree Realty Corporation?

The term loan will strengthen Agree Realty Corporation's balance sheet and position the company for continued growth.

What are the forward starting swaps entered by Agree Realty Corporation?

Agree Realty Corporation has entered into $350 million of forward starting swaps to fix the interest rate on the term loan over the 5.5-year period.