Agree Realty Announces Expanded $1.25 Billion Credit Facility
Agree Realty (NYSE: ADC) announced an expanded $1.25 billion Credit Facility. The Fourth Amended and Restated Revolving Credit Agreement increases the credit facility from its previous amount and includes an accordion option for up to $2.0 billion. The facility will mature in August 2028, with an option to extend to August 2029. CFO Peter Coughenour noted that the expansion strengthens the company's balance sheet and enhances its liquidity, which now stands at around $1.7 billion, excluding the $750 million accordion option. The borrowing cost has been reduced by five basis points, now set at SOFR plus 82.5 basis points, down from SOFR plus 87.5 basis points.
Agree Realty (NYSE: ADC) ha annunciato un'estensione della Linea di Credito di 1,25 miliardi di dollari. Il Quarto Accordo di Credito Revolvente Modificato e Riportato aumenta l'importo della linea di credito rispetto a quello precedente e include un'opzione accordion fino a 2,0 miliardi di dollari. La scadenza della linea è prevista per agosto 2028, con un'opzione di estensione fino ad agosto 2029. Il CFO Peter Coughenour ha sottolineato che l'espansione rinforza il bilancio dell'azienda e migliora la sua liquidità, che ora si attesta attorno a 1,7 miliardi di dollari, escludendo l'opzione accordion di 750 milioni di dollari. Il costo del prestito è stato ridotto di cinque punti base, ora fissato a SOFR più 82,5 punti base, in calo da SOFR più 87,5 punti base.
Agree Realty (NYSE: ADC) anunció una Facilidad de Crédito de 1.25 mil millones de dólares ampliada. El Cuarto Acuerdo de Crédito Revolvente Modificado y Restablecido incrementa la facilidad de crédito desde su monto anterior e incluye una opción de acordeón de hasta 2.0 mil millones de dólares. La facilidad vencerá en agosto de 2028, con una opción de extensión hasta agosto de 2029. El CFO Peter Coughenour destacó que la expansión fortalece el balance de la empresa y mejora su liquidez, que ahora se sitúa en aproximadamente 1.7 mil millones de dólares, excluyendo la opción de acordeón de 750 millones de dólares. El costo de préstamo se ha reducido en cinco puntos básicos, ahora fijado en SOFR más 82.5 puntos básicos, bajando desde SOFR más 87.5 puntos básicos.
Agree Realty (NYSE: ADC)는 12억 5천만 달러의 신용 시설을 확장했다고 발표했습니다. 네 번째 수정 및 재설정된 회전 신용 계약은 이전 금액에서 신용 시설을 증가시키고 최대 20억 달러까지의 아코디언 옵션을 포함합니다. 이 시설은 2028년 8월에 만료되며, 2029년 8월로 연장할 수 있는 옵션이 있습니다. CFO인 Peter Coughenour는 확장이 회사의 대차대조표를 강화하고 유동성을 향상시킨다고 언급했으며, 현재 유동성은 7억 달러에 달하며, 7억 5천만 달러의 아코디언 옵션은 제외됩니다. 대출 비용은 5bp 감소하여 현재 SOFR 플러스 82.5bp로 설정되었으며, 이는 SOFR 플러스 87.5bp에서 하락한 것입니다.
Agree Realty (NYSE: ADC) a annoncé une facilité de crédit de 1,25 milliard de dollars élargie. Le Quatrième Accord de Crédit Révisé et Restitué augmente la facilité de crédit par rapport à son montant précédent et inclut une option accordéon allant jusqu'à 2,0 milliards de dollars. La facilité expirera en août 2028, avec une option de prolongation jusqu'en août 2029. Le CFO Peter Coughenour a souligné que l'expansion renforce le bilan de l'entreprise et améliore sa liquidité, qui se situe désormais à environ 1,7 milliard de dollars, excluant l'option accordéon de 750 millions de dollars. Le coût d'emprunt a été réduit de cinq points de base, désormais fixé à SOFR plus 82,5 points de base, en baisse par rapport à SOFR plus 87,5 points de base.
Agree Realty (NYSE: ADC) hat eine erweiterte Kreditfazilität in Höhe von 1,25 Milliarden Dollar angekündigt. Der Vierte Änderungs- und Neufassung des revolvierenden Kreditvertrags erhöht die Kreditfazilität gegenüber dem vorherigen Betrag und beinhaltet eine Accordion-Option von bis zu 2,0 Milliarden Dollar. Die Fazilität läuft im August 2028 aus, mit einer Option zur Verlängerung bis August 2029. CFO Peter Coughenour wies darauf hin, dass die Expansion die Bilanz des Unternehmens stärkt und die Liquidität verbessert, die nun bei etwa 1,7 Milliarden Dollar liegt, ohne die 750 Millionen Dollar umfassende Accordion-Option. Die Kreditkosten wurden um fünf Basispunkte gesenkt und liegen nun bei SOFR plus 82,5 Basispunkte, nach zuvor SOFR plus 87,5 Basispunkten.
- Increased Credit Facility to $1.25 billion.
- Accordion option for up to $2.0 billion.
- Extended maturity to August 2029.
- Reduced borrowing cost by five basis points.
- Total liquidity approximately $1.7 billion.
- None.
Insights
Agree Realty's expanded
The accordion option to increase the facility to
This facility enhancement demonstrates strong lender confidence in Agree Realty's business model and future prospects, which is a positive signal for investors.
The expanded Credit Facility is a game-changer for Agree Realty in the competitive REIT landscape. It provides substantial dry powder for acquisitions and development projects, potentially accelerating the company's growth trajectory. The reduced borrowing cost, while seemingly small, can translate to meaningful savings on large-scale investments typical in real estate.
The extended maturity aligns well with the long-term nature of real estate investments, offering stability in financing. This move could give Agree Realty an edge in negotiations for prime properties, as they can act swiftly with assured funding. However, investors should monitor the company's leverage and ensure that expansion doesn't come at the cost of financial prudence.
Reduces Borrowing Cost by Five Basis Points and Extends Maturity to 2029
"This expanded Credit Facility bolsters our fortress balance sheet and provides us with significant capacity as we continue to expand our pipeline," said Peter Coughenour, Chief Financial Officer. "We greatly appreciate the strong support of our bank group. We now enjoy approximately
Based on the Company's current credit ratings and leverage ratio, borrowings under the Credit Facility will bear interest at a rate of SOFR plus 82.5 basis points including a credit spread adjustment, which was reduced from a rate of SOFR plus 87.5 basis points including a credit spread adjustment under the Third Amended and Restated Revolving Credit Agreement.
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 June 30, 2024, the Company owned and operated a portfolio of 2,202 properties, located in 49 states and containing approximately 45.8 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.
Forward-Looking Statements
This press release may contain forward-looking statements, including statements about the interest rate on our Credit Facility, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "can," "will," "should," "potential," "intend," "expect," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," "forecast," "continue," "assume," "plan," "outlook" or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information.
Although these forward-looking statements are based on good faith beliefs, reasonable assumptions and the Company's best judgment reflecting current information, you should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company's control and which could materially affect the Company's results of operations, financial condition, cash flows, performance or future achievements or events. Currently, some of the most significant factors include the potential adverse effect of ongoing worldwide economic uncertainties. The extent to which these conditions will impact the Company and its tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence. Moreover, investors are cautioned to interpret many of the risks identified in the risk factors discussed in the Company's Annual Report on Form 10-K and subsequent quarterly reports filed with the
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SOURCE Agree Realty Corporation
FAQ
What is the new total amount of Agree Realty's credit facility?
What is the borrowing cost under the new credit facility for ADC?
When does Agree Realty's new credit facility mature?
What is the total liquidity of Agree Realty excluding the accordion option?
What is the accordion option amount available for Agree Realty?
