Phillips Edison & Company Announces Maturity Extension and Upsize of $1.0 Billion Unsecured Revolving Credit Facility
Phillips Edison & Company (PECO) has announced significant amendments to its unsecured revolving credit facility. The facility has been increased from $800 million to $1.0 billion and its maturity extended to January 9, 2029, with options for two additional six-month extensions.
The company can further increase the facility or incur new term loans by up to $500 million and increase the existing term loan by up to $200 million, subject to syndication. Borrowings will initially bear interest at SOFR plus 86.5 basis points, an improvement from the previous rate of SOFR plus 94 basis points. An annual facility fee of 15 basis points applies, with both rates subject to adjustment based on credit ratings, leverage ratio, and sustainability metrics.
The syndication is led by PNC Bank Capital Markets and KeyBanc Capital Markets as Joint Bookrunners and Joint Lead Arrangers, with participation from several major financial institutions.
Phillips Edison & Company (PECO) ha annunciato significative modifiche alla sua linea di credito revolving non garantita. La linea di credito è stata aumentata da 800 milioni di dollari a 1,0 miliardi di dollari e la scadenza è stata prorogata al 9 gennaio 2029, con opzioni per due ulteriori proroghe semestrali.
L'azienda può ulteriormente aumentare la linea di credito o contrarre nuovi prestiti a termine fino a un massimo di 500 milioni di dollari e aumentare il prestito a termine esistente fino a un massimo di 200 milioni di dollari, soggetto a sindacazione. Gli importi presi in prestito porteranno inizialmente un tasso d'interesse pari a SOFR più 86,5 punti base, un miglioramento rispetto al precedente tasso di SOFR più 94 punti base. Si applica una commissione annuale per la linea di credito di 15 punti base, con entrambi i tassi soggetti a aggiustamenti basati sui rating creditizi, sul rapporto di leva finanziaria e sulle metriche di sostenibilità.
La sindacazione è guidata da PNC Bank Capital Markets e KeyBanc Capital Markets come Joint Bookrunners e Joint Lead Arrangers, con la partecipazione di diverse importanti istituzioni finanziarie.
Phillips Edison & Company (PECO) ha anunciado modificaciones significativas a su línea de crédito revolving no garantizada. La línea se ha aumentado de 800 millones de dólares a 1,0 mil millones y su vencimiento se ha extendido hasta el 9 de enero de 2029, con opciones para dos extensiones adicionales de seis meses.
La empresa puede aumentar aún más la línea de crédito o incurrir en nuevos préstamos a plazo de hasta 500 millones de dólares y aumentar el préstamo a plazo existente en hasta 200 millones de dólares, sujeto a sindicatura. Los préstamos inicialmente devengarán intereses a SOFR más 86,5 puntos básicos, una mejora respecto a la tasa anterior de SOFR más 94 puntos básicos. Se aplica una tarifa anual de 15 puntos básicos a la línea de crédito, siendo ambos tipos sujetos a ajuste basado en calificaciones crediticias, ratio de apalancamiento y métricas de sostenibilidad.
La sindicatura es liderada por PNC Bank Capital Markets y KeyBanc Capital Markets como Joint Bookrunners y Joint Lead Arrangers, con la participación de varias instituciones financieras importantes.
Phillips Edison & Company (PECO)는 무담보 회전 신용 시설에 대한 중요한 수정을 발표했습니다. 이 시설은 8억 달러에서 10억 달러로 증가했으며 만기는 2029년 1월 9일까지 연장되었고, 두 번의 추가 6개월 연장 옵션이 있습니다.
회사는 또한 5억 달러까지 추가 시설을 증가시키거나 새로운 기간 대출을 발생시킬 수 있으며, 기존 기간 대출을 최대 2억 달러까지 증가시킬 수 있으며 이는 신디케이션에 따라 다릅니다. 대출은 처음에 SOFR에 86.5포인트를 더한 이자가 적용되며, 이는 이전 SOFR에 94포인트를 더한 이자에서 개선된 것입니다. 연간 시설 수수료는 15포인트가 적용되며, 두 금리는 신용 평가, 레버리지 비율 및 지속 가능성 지표에 따라 조정될 수 있습니다.
신디케이션은 PNC Bank Capital Markets와 KeyBanc Capital Markets가 공동 북 커런트 및 공동 주선자로서 주도하며, 여러 주요 금융 기관이 참여하고 있습니다.
Phillips Edison & Company (PECO) a annoncé des modifications significatives à son crédit rotatif non garanti. Le montant a été augmenté de 800 millions de dollars à 1,0 milliard de dollars et l'échéance a été prolongée jusqu'au 9 janvier 2029, avec des options pour deux prolongations de six mois supplémentaires.
L'entreprise peut augmenter davantage la ligne de crédit ou contracter de nouveaux prêts à terme jusqu'à 500 millions de dollars et augmenter le prêt à terme existant jusqu'à 200 millions de dollars, sous réserve de syndication. Les emprunts porteront initialement des intérêts à SOFR plus 86,5 points de base, une amélioration par rapport au taux précédent de SOFR plus 94 points de base. Des frais annuels de 15 points de base s'appliquent, avec les deux taux soumis à ajustements basés sur les notations de crédit, le ratio d'endettement et les critères de durabilité.
La syndication est dirigée par PNC Bank Capital Markets et KeyBanc Capital Markets en tant que Joint Bookrunners et Joint Lead Arrangers, avec la participation de plusieurs grandes institutions financières.
Phillips Edison & Company (PECO) hat bedeutende Änderungen an seiner unbesicherten revolvierenden Kreditfazilität angekündigt. Die Fazilität wurde von 800 Millionen auf 1,0 Milliarden US-Dollar erhöht und die Laufzeit bis zum 9. Januar 2029 verlängert, mit Optionen für zwei zusätzliche sechsmonatige Verlängerungen.
Das Unternehmen kann die Fazilität weiter erhöhen oder neue Terminkredite bis zu 500 Millionen US-Dollar aufnehmen und den bestehenden Terminkredit um bis zu 200 Millionen US-Dollar erhöhen, vorbehaltlich der Syndizierung. Die Darlehen tragen zunächst Zinsen von SOFR zuzüglich 86,5 Basispunkten, eine Verbesserung gegenüber dem vorherigen Satz von SOFR zuzüglich 94 Basispunkten. Eine jährliche Fazilitätsgebühr von 15 Basispunkten ist fällig, wobei beide Raten anpassbar sind, basierend auf Kreditratings, Hebelverhältnis und Nachhaltigkeitskennzahlen.
Die Syndizierung wird von PNC Bank Capital Markets und KeyBanc Capital Markets als Joint Bookrunners und Joint Lead Arrangers geleitet, mit der Teilnahme mehrerer wichtiger Finanzinstitute.
- Increased credit facility capacity by $200 million to $1.0 billion
- Extended maturity date to January 2029 with additional extension options
- Reduced borrowing cost from SOFR+94bps to SOFR+86.5bps
- Additional flexibility to increase facility by up to $500 million and term loan by $200 million
- None.
Insights
The $1.0 billion credit facility expansion and extension represents a strategic financial maneuver that substantially strengthens PECO's liquidity position and operational flexibility. The $200 million increase from the previous
The extension to January 2029, with two additional six-month extension options, provides PECO with extended financial runway and reduced refinancing risk. The additional
This enhanced credit profile positions PECO advantageously in the current high-rate environment, particularly for executing their accelerated acquisition strategy in the grocery-anchored retail sector, where cap rates typically offer attractive spreads over debt costs.
The timing of this credit facility enhancement is particularly strategic given the current commercial real estate market dynamics. Grocery-anchored retail centers have demonstrated resilience compared to other retail subsectors, maintaining steady occupancy rates and reliable cash flows through economic cycles. The improved terms and expanded capacity suggest that major financial institutions share this positive outlook on PECO's grocery-anchored portfolio strategy.
The sustainability-linked pricing component aligns with growing ESG investment mandates and could potentially lead to even lower borrowing costs. The impressive syndicate of leading financial institutions, including PNC, KeyBank, Bank of America, JPMorgan and Wells Fargo, validates PECO's market position and growth strategy in the grocery-anchored retail space.
CINCINNATI, Jan. 09, 2025 (GLOBE NEWSWIRE) -- Phillips Edison & Company, Inc. (Nasdaq: PECO) (“PECO” or the “Company”), one of the nation’s largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers, today announced the closing of the second amendment to its unsecured revolving credit facility (the “Revolving Credit Facility”). The amendment increases the size of the Revolving Credit Facility to
Borrowings under the Revolving Credit Facility will initially bear interest at an annual rate of SOFR plus 86.5 basis points, with future pricing subject to adjustment based on the Company’s credit ratings, leverage ratio and sustainability metrics, compared to a rate of SOFR plus 94 basis points for the Revolving Credit Facility prior to giving effect to the second amendment. An annual facility fee of 15 basis points, subject to adjustment based on the Company’s credit ratings and leverage ratio, applies to the entire Revolving Credit Facility.
John Caulfield, Executive Vice President, Chief Financial Officer and Treasurer of PECO stated: “Our amended revolving credit facility highlights the strength of PECO’s portfolio, operating platform, balance sheet and liquidity position. We believe that the additional financial capacity positions PECO well to execute our accelerated growth plans and further enhance long-term shareholder value as we increase our anticipated acquisition pace. We thank our lending partners for their continued support.”
The syndication is led by PNC Bank Capital Markets LLC and KeyBanc Capital Markets as Joint Bookrunners and Joint Lead Arrangers, with BofA Securities, Inc., JPMorgan Chase Bank, N.A. and Wells Fargo Securities, LLC as the other Joint Lead Arrangers. PNC Bank, National Association, acts as Administrative Agent for the Revolving Credit Facility and KeyBank National Association, BofA Securities, Inc., JPMorgan Chase Bank, N.A and Wells Fargo Bank, National Association act as Co-Syndication Agents for the Revolving Credit Facility. BMO Harris Bank, N.A., Capital One, National Association, Fifth Third Bank, National Association, Mizuho Bank, Ltd., Regions Bank and U.S. Bank, National Association act as Co-Documentation Agents for the Revolving Credit Facility. Morgan Stanley Bank, N.A. and Associated Bank also participate in the Revolving Credit Facility. PNC Capital Markets LLC serves as Sustainability Agent.
Connect with PECO
For additional information, please visit https://www.phillipsedison.com/
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About Phillips Edison & Company
Phillips Edison & Company, Inc. (“PECO”) is one of the nation’s largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO’s centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO’s top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of September 30, 2024, PECO managed 311 shopping centers, including 290 wholly-owned centers comprising 32.9 million square feet across 31 states and 21 shopping centers owned in two institutional joint ventures. PECO is focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time.
PECO uses, and intends to continue to use, its Investors website, which can be found at https://investors.phillipsedison.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.
Forward-Looking Statements
This press release contains certain forward-looking statements 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. Phillips Edison & Company, Inc. (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 the safe harbor provisions. Such forward-looking statements can generally be identified by the Company’s use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” “seek,” “objective,” “goal,” “strategy,” “plan,” “focus,” “priority,” “should,” “could,” “potential,” “possible,” “look forward,” “optimistic,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this earnings release. Such statements include, but are not limited to: (a) statements about the Company’s plans, strategies, initiatives, and prospects; (b) statements about the Company’s underwritten incremental yields; and (c) statements about the Company’s future results of operations, capital expenditures, and liquidity. Such statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated, including, without limitation: (i) changes in national, regional, or local economic climates; (ii) local market conditions, including an oversupply of space in, or a reduction in demand for, properties similar to those in the Company’s portfolio; (iii) vacancies, changes in market rental rates, and the need to periodically repair, renovate, and re-let space; (iv) competition from other available shopping centers and the attractiveness of properties in the Company’s portfolio to its tenants; (v) the financial stability of the Company’s tenants, including, without limitation, their ability to pay rent; (vi) the Company’s ability to pay down, refinance, restructure, or extend its indebtedness as it becomes due; (vii) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors; (viii) potential liability for environmental matters; (ix) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (x) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax, and other considerations; (xi) changes in tax, real estate, environmental, and zoning laws; (xii) information technology security breaches; (xiii) the Company’s corporate responsibility initiatives; (xiv) loss of key executives; (xv) the concentration of the Company’s portfolio in a limited number of industries, geographies, or investments; (xvi) the economic, political, and social impact of, and uncertainty relating to, pandemics or other health crises; (xvii) the Company’s ability to re-lease its properties on the same or better terms, or at all, in the event of non-renewal or in the event the Company exercises its right to replace an existing tenant; (xviii) the loss or bankruptcy of the Company’s tenants; (xix) to the extent the Company is seeking to dispose of properties, the Company’s ability to do so at attractive prices or at all; and (xx) the impact of inflation on the Company and on its tenants. Additional important factors that could cause actual results to differ are described in the filings made from time to time by the Company with the SEC and include the risk factors and other risks and uncertainties described in the Company’s 2023 Annual Report on Form 10-K, filed with the SEC on February 12, 2024, as updated from time to time in the Company’s periodic and/or current reports filed with the SEC, which are accessible on the SEC’s website at www.sec.gov. Therefore, such statements are not intended to be a guarantee of the Company’s performance in future periods.
Except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Investors
Kimberly Green, Head of Investor Relations
(513) 692-3399, kgreen@phillipsedison.com
FAQ
What is the new size of PECO's revolving credit facility after the January 2024 amendment?
When is the new maturity date for PECO's revolving credit facility?
What is the new interest rate for PECO's revolving credit facility?
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What is the annual facility fee for PECO's revolving credit facility?
