Armada Hoffler Announces Closing of $100 Million Fixed-Rate Unsecured Term Loan

Rhea-AI Summary

Armada Hoffler (NYSE: AHH) has initiated a $100 million unsecured term loan, with potential expansion to $200 million, to unencumber its Wills Wharf asset and three retail locations in Virginia Beach. This loan matures in January 2027 at a fixed interest rate of 4.79%. CFO Matthew Barnes-Smith highlighted the company's focus on enhancing liquidity and capital structure, attributing progress to the Franklin Templeton lease at Wills Wharf. Manufacturers and Traders Bank will serve as the lead arranger for this credit facility.

Positive

• Secured a $100 million unsecured term loan, with potential to increase to $200 million.
• Improved liquidity and capital structure through the new financing.
• Contributed to a more unsecured balance sheet by unencumbering key assets.

Negative

• None.

VIRGINIA BEACH, Va., Dec. 07, 2022 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) today announced that it has initiated a new $100 million unsecured term loan with the option to increase the total capacity to $200 million. Proceeds from the term loan have been used to unencumber the company’s newly stabilized Wills Wharf asset, as well as three Town Center of Virginia Beach retail assets. The new term loan matures concurrently with the existing line in January 2027 at a fixed interest rate of 4.79%.

“We appreciate the continued support we have received from our preferred lender group, particularly considering today’s market conditions,” said Matthew Barnes-Smith, Chief Financial Officer of Armada Hoffler. “The company remains committed to delivering long-term value to our stakeholders by continuing to improve our liquidity and further strengthening our capital structure. Executing the Franklin Templeton lease at Wills Wharf has enabled us to take another step to a more unsecured balance sheet featuring longer term fixed-rate debt instruments.”

Manufacturers and Traders Bank (M&T) will act as the sole and exclusive administrative agent and lead arranger for the credit facility.

About Armada Hoffler
Armada Hoffler (NYSE: AHH) is a vertically integrated, self-managed real estate investment trust with over four decades of experience developing, building, acquiring, and managing high-quality office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. We also provide general construction and development services to third-party clients, in addition to developing and building properties to be placed in our stabilized portfolio. Founded in 1979 by Daniel A. Hoffler, Armada Hoffler has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information visit ArmadaHoffler.com

Contact:
Chelsea Forrest
Armada Hoffler
Director of Corporate Communications and Investor Relations
Email: CForrest@ArmadaHoffler.com
Phone: (757) 612-4248

FAQ

What is the significance of Armada Hoffler's new loan?

The new $100 million unsecured term loan aims to enhance liquidity and unencumber key assets, strengthening the company's financial position.

What are the terms of Armada Hoffler's unsecured term loan?

The loan has a fixed interest rate of 4.79% and matures in January 2027, with an option to increase total capacity to $200 million.

Which assets are involved in Armada Hoffler's new loan?

The loan proceeds will unencumber the Wills Wharf asset and three retail properties in the Town Center of Virginia Beach.

Who is managing the new term loan for Armada Hoffler?

Manufacturers and Traders Bank (M&T) is the sole and exclusive administrative agent and lead arranger for the credit facility.