Urban Edge Properties Increases its Unsecured Revolving Credit Facility to $800 Million and Extends Maturity

Rhea-AI Summary

Urban Edge Properties (NYSE:UE) has successfully amended and restated its unsecured revolving credit facility, increasing the amount from $600 million to $800 million. The new facility, which has a maturity date of February 9, 2027 (extendable to 2028), features an interest rate of SOFR plus 1.10% and an annual facility fee of 0.15%. Notably, an ESG pricing provision allows for a reduction in the interest margin based on sustainability performance. Notably, there are currently no amounts drawn on the line of credit.

Positive

• Increase of credit facility from $600 million to $800 million.
• Extended maturity date to February 9, 2027, providing additional financial flexibility.
• Incorporation of ESG pricing provision, incentivizing sustainability efforts.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Urban Edge Properties (NYSE:UE) announced that it has completed an amendment and restatement to its existing unsecured revolving credit facility increasing the size from $600 million to $800 million. Borrowings under the facility bear interest at a rate of SOFR plus 1.10% with an annual facility fee of 0.15% based on the current leverage ratio as defined in the facility. The recast facility also features an Environmental, Social and Governance (“ESG”) pricing provision whereby the applicable interest rate margin can be reduced if the Company meets certain sustainability performance targets. The facility was previously due to mature on January 29, 2024 and now has a maturity date of February 9, 2027 (or, February 9, 2028 if the company exercises each of its two six-month extension options). No amounts are currently drawn on the line of credit.

The joint lead arrangers and joint book-runners are Wells Fargo Securities, LLC and PNC Capital Markets LLC. The passive joint lead arrangers and documentation agents are U.S. Bank National Association, Truist Bank, and TD Bank, N.A.

Wells Fargo Bank, National Association will continue to be the administrative agent for the credit facility and PNC Bank, National Association will continue to be the syndication agent. Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., JPMorgan Chase Bank, N.A., and United Bank are also participants in the credit facility.

ABOUT URBAN EDGE PROPERTIES

Urban Edge Properties is a NYSE listed real estate investment trust focused on managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the Washington, D.C. to Boston corridor. Urban Edge owns 76 properties totaling 17.2 million square feet of gross leasable area.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220809006041/en/

Mark Langer, EVP and Chief Financial Officer

212-956-2556

Source: Urban Edge Properties

FAQ

What is the new credit facility amount for Urban Edge Properties (UE)?

Urban Edge Properties has increased its unsecured revolving credit facility from $600 million to $800 million.

What is the maturity date of Urban Edge Properties' new credit facility?

The new credit facility matures on February 9, 2027, with an option to extend until 2028.

What is the interest rate for Urban Edge Properties' new credit facility?

The interest rate for the new credit facility is SOFR plus 1.10%.

Does the new credit facility for UE have an ESG component?

Yes, the facility includes an ESG pricing provision that can reduce the interest margin based on sustainability performance.

Is Urban Edge Properties currently utilizing its credit line?

No amounts are currently drawn on Urban Edge Properties' line of credit.